Ques - I am considering reducing the rent for tenants whose income has been adversely affected by COVID-19 to enable them to stay in the property. The tenants are not in default of their rent. Will my deduction for rental property expenses be reduced because of this?

No. If you decide to reduce the rent to enable your tenants to remain in the property (thereby maximising your rental return in a changed rental market), your deduction for rental property expenses will not be reduced.

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• Ques - My tenants are not paying their full rent or have temporarily stopped paying rent because their income has been adversely affected by COVID-19. Can I still claim deductions on my rental property expenses?

  Yes. If tenants are not meeting their payment obligations under the lease agreement due to COVID-19 and you continue to incur normal expenses on your property, then you will still be able to claim these expenses in your tax return.

• Ques - What all expenses can be claimed as Work from Home expenses deduction. How much can be claimed?

  The work from home expenses generally includes expenses associated with heating, cooling, and lighting in the area you are working from, phone and internet and other running expenses.  As per regulation 52 cent for each hour you work from home can be ...

• Ques - I am a working parent with school-aged children who are learning from home during the COVID-19 crisis. Will I be able to claim a deduction for the costs associated with setting them up for learning?

  No, costs relating to your children’s education are personal expenses and not deductible. Examples of costs include setting them up to do online learning, teaching them at home, purchasing school supplies or items like desks, iPads, or sporting ...

• Ques - I forgot to claim certain deductions in my tax return. What can I do now?

  In that case you need to amend you tax return and claim the deductions which were left over earlier. The deduction claimed must be supported by documents and expenses receipts.

• Ques - If the bank defers loan repayments for a period, can I continue to claim interest on the loan as a deduction?

  Yes. If interest continues to accumulate on your loan, it will be an expense that you have incurred and is therefore deductible. Interest remains deductible on the loan even if the bank defers the repayments.