Give or receive a COVID-19 rent concession?
Do you rent your business premises? Or are you a landlord who rents out commercial property?
If your landlord gave you a rent concession, or if you're a landlord who has given a rent concession to a tenant because of COVID-19, you need to consider this in your tax returns.
There may be changes to the income you declare, deductions you can claim and your GST and capital gains tax (CGT) obligations.
The changes will depend on:
the type of rent concession (such as a waiver or deferral) you’ve received or given
if an existing agreement has changed, or a new or additional agreement has been created.
For landlords, the changes will also depend on whether you use cash or accruals accounting.
For example, if you are a tenant that had already paid your rent for August 2020 but your landlord waived and refunded the amount to you, you’ll still be entitled to claim a deduction for the rent in your 2020–21 tax return. However, you should also include the refunded amount in your assessable income.
Source: ATO July 2021
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/Newsroom/smallbusiness/General/Give-or-receive-a-COVID-19-rent-concession-/.
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.