Recently the ATO issued a media release in which they have committed a greater focus on the deductions claimed by individuals for holiday homes. This focus is centred on whether these properties are genuinely available for rent in the periods which are indicated by taxpayers.
Legal Expenses
A recent private ruling has highlighted instances where legal expenses are considered deductible under the general provisions of ITAA 1997 s 8-1. Under the provision, a deduction is allowed for legal expenses which are incurred in order to earn assessable income or in carrying on a business.
Tax Residency
The Full Federal Court of Australia has overturned a previous court ruling that effectively made an individual a tax resident of Australia in the 2011 income year. During that year, the individual in question was living in Bahrain and working in Saudi Arabia, however, had family and financial investments in Australia.
