Tax depreciation and Airbnb


Expert Advice with Tyron Hyde - 03/09/2015

Have you ever thought about renting a room out in your house on Airbnb for a few extra bucks? I know I have.

Airbnb, in case you haven’t heard, is a website that allows you to offer short-term accommodation to travellers, or you stay at someone else's place. But what are the tax implications and can you claim depreciation?

The simple answer is ‘Yes’! For example, if you rent out one bedroom of your two-bedroom apartment… you can claim depreciation based upon a pro-rated ratio. This tends to be based upon a fl oor area calculation and split between the portion set aside to produce income and the portion not producing income.

BUT there is a big catch.
By renting out part of your house you will not be able to claim the full Capital Gains Exemptions that apply to your main residence. So, you need to do a cost-benefit analysis that takes into account rental income received, depreciation claimed and potential capital gains tax (CGT) payable.

TIP: If you think the market has peaked and will be fl at for a while, then this strategy could be worthwhile. Get the property valued at the point you start renting it out, and if the value is the same in 10 years’ time... well, there would be no CGT payable anyway!


Tyron Hyde is the CEO of Washington Brown and is considered one of Australia’s leading experts in property tax depreciation. He is also a registered tax agent.  Washington Brown manages construction costs worth over $2 billion and completes 10,000 schedules annually. For a depreciation schedule quote CLICK HERE and follow the 3 simple steps or estimate your depreciation cost. 

The Washington Brown Free Depreciation Calculator will give you an estimate of the depreciation deductions you could claim on your investment property

Read more Expert Advice articles by Tyron
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.

Do you have more than $200k in your super fund? You could use your super to buy property - Find out how

Top Suburbs : millner , wiley park , canterbury , springwood , kariong

go back