Not apportioning interest expenses correctly
Broadly, rental property owners can only claim deductions for interest they pay on a loan used to:
* buy the rental property;
* buy a depreciating asset for the property (e.g., an air conditioner);
* pay for deductible expenses (e.g., repairs) that arise from renting out the property; or
* finance renovations and extensions to the rental property.
Interest on any part of the loan used for private purposes is not deductible. […]
