|Rental property deductions partly denied|
The AAT has partly affirmed the decision of the Commissioner to disallow additional deductions in relation to a rental property as the taxpayer was not able to substantiate some of the claims: AAT Case  AATA 174 (AAT, Ref No: 2011/2025, Ettinger SM, 21 March 2012).
Subsequently, the taxpayer requested the rental expenses be increased by an additional $5,208.47 in relation to interest, telephone, electricity, insurance, repairs, inspection, and other costs. The Commissioner disallowed the additional deductions for the reason that the rental property was not available for rent in the 2007 financial year. The taxpayer argued that the property was available for rent and the vacancy was due to the remote location.
However, in relation to the remaining deductions, the AAT held that it was not satisfied the taxpayer had discharged the "burden of demonstrating a sufficient nexus between all the expenditure incurred, and the deductions claimed relating to the property for the production of assessable income for the purposes of s 8-1(1)(a) of the ITAA 1997". Accordingly, the AAT partly affirmed the Commissioner's decision to disallow the additional rental deductions.
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