Property investors and tax time - follow the rules

The ATO reported last year an extraordinary number of sampled tax returns from landlords required significant adjustment. The ATO remains vigilant on auditing property owners to ensure compliance. There are several areas in which returns are often non-compliant. This is something to be aware of. Work with advisers to make sure all information provided to the ATO is fully transparent. The top issues of concern in regard to property investments usually relate to the following:

·???????? Failure to declare all rental income

·???????? Failure to disclose capital gain on the sale of any rental properties

·???????? Claiming the main residence exemption under the capital gains tax for profit for the sale of a rental property

·???????? Claiming interest deductions when an investment property like a holiday home is not really rented

·???????? Claiming deductions for the full cost of travel to inspect a property when the travel was also part of a holiday

·???????? Claiming renovations for holiday homes that are not classed as genuine repairs.

For any questions around tax compliance and managing investments and tax structures, contact Lisa Christo at NDA Law. #tax #property #SME #investments #law #ATO

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