Property investors are being warned to have sufficient and correct records to do their tax.Property listingsProperty investors are being warned to have sufficient and correct records when declaring rental income and deductions as the tax office is keeping a close eye on real estate claims once again.
Elinor Kasapidis, senior manager of tax policy at CPA Australia, the country’s professional accounting body, said while these two areas have been on the ATO’s radar in the past, they have taken a renewed interest after they diverted their attention to other matters when the pandemic first hit two years ago.
“Where sometimes landlords get into trouble, for example, is a holiday house where they or their close family might actually use it for parts of the year. So, the ATO is really big on landlords making sure that properties were genuinely available for rent, they were on the market, before people can start to claim those costs,” she said.“People are claiming expenses for periods when they’re actually using their house for themselves, or their friends, or family are using the house. That’s not OK.
“Some people rent to relatives at lower than market value, and they want to claim the interest. That’s not acceptable if you claim less than market rent, then you can only claim up to the amount of rental income you receive,” Barbara said.He said investors should also make sure to not mix up claims between repairs, which are deductible, and improvements, which claim depreciation over time.
Barbara warned investors to be meticulous with their record-keeping as the ATO builds on its auditing capabilities.
Source: Real Estate Daily Report (realestatedailyreport.net)
TawarRazaghi Oh.
Australia Latest News, Australia Headlines
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