When a taxpayer lets out their primary residence during the holiday season for a month and rents a property elsewhere to stay during that period can they claim the rent paid against the rental income received?
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
The deduction can only be made under section 11(a) if it is not prohibited by section 23. The ‘in production of income’ requirement may not meet the “laid out or expended for the purposes of trade” requirement – section 23(g). Or it may be caught by section 23(a).