[Anonymous]

Hi,

I keep getting mixed up on the treatment of expenses related to rental income. When do you exclude expenses and when do you included/allocate them?

My understanding was that if the dwelling is rented for < 15 days, rental income and expenses are not recognized. When a dwelling is rented for > 14 days and personal use is > 14 days or 10% of days rented, then rental income is included and deductions are limited to gross rental income. When a dwelling is rented for > 14 days and personal use is < 15 days or 10% of days rented, then rental income is included and expenses allocated to the rental income are allowed. Am I missing something? This is in reference to Question #1726 in NINJA MCQ.

Thanks!

[Anonymous]

Looks correct to me.

[Author]

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