01 Jun 099 Rental property expenses disallowed - BonaccordoThe AAT has disallowed claims for deductions in respect of expenses incurred in relation to a residential property purchased as a rental investment. For a variety of reasons, no income was ever derived from renting the premises in the years in question or at all. The premises were never listed with a real estate agent, nor were any advertisements made by a real estate agent or the taxpayer. The only objective and overt act taken by the taxpayer was to place a sign in front of the property. The taxpayer took no other significant steps to advertise the property. Except for the continued residence of the aged vendor for several months after the sale, the property remained vacant for the entirety of the period under review. The AAT affirmed the Commissioner's decision disallowing the claimed deductions: Re Bonaccordo and FCT  AATA 385 (AAT, Hon Brian Tamberlin QC DP, 28 May 2009).
For a copy of the decision go here.