Are you keeping records correctly? The ATO will be targeting property investors who are not doing the right thing.

Over 2.2 million Aussies claimed more than $47 billion in deductions in the 2017-2018 financial year, led by work-related expenses and rental claims— and ATO announced about two months ago that it would double the number of audits scrutinising rental deductions.

No penalties would apply for taxpayers who amend their returns due to genuine mistakes, but deliberate attempts to over-claim can attract penalties of up to 75% of the claim.

ATO will be looking at the incorrect apportionment of rental income and expenses between owners.

For instance, deductions on a jointly-owned property are claimed by the owner with the higher taxable income rather than jointly.

In addition, the government agency will reassess holiday homes that are not genuinely available for rent.

Rental property owners should only claim for the periods the property is rented out.

Landlords should not claim for periods of personal use.


Source- https://www.yourinvestmentpropertymag.com.au/news/ato-ready-to-bust-dodgy-tax-returns-263257.aspx

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Marlene Liontis
Thursday, 6 June 2019

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