The ATO has published a list of common taxpayer errors found from its recent property management data matching program.
The key findings in the report were as follows:
- Instead of reporting gross rental income and claiming expenses, net rent (after expenses) is reported and the same expenses are claimed a second time.
- Properties are being omitted from tax returns.
- Where properties are owned by multiple stakeholders, only one owner reports the property – when both are required to report.
- Not reporting the rental income received when purchasing an already tenanted property that the new owner intends on moving in to.
- Capital works or depreciating assets being claimed as repairs and maintenance
If you have forgotten to tell us about any rent received or made mistakes with claiming expenses, we urge you to lodge an amendment as soon as possible.
Also, records are normally required to be retained for 5 years from the date on which the record was prepared or obtained, or from the time the relevant transaction or act was completed, whichever is the later.
If you wish you discuss this with us further, please do not hesitate to contact us.
The team at EMspire Advisory are trusted, qualified Chartered Accountants, tax agents, and small business accountants. We work closely with our clients to achieve the best possible outcomes. To find out more, please contact us!
Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.