Property owners can expect their tax returns to be closely scrutinised this year, as the ATO is launching a crackdown on dodgy claims.
The ATO recently, conducted a series of random audits of investment property owners and tax office checkers, found errors in 9 out of 10 returns that were reviewed.
Pay special attention to these common pitfalls that could land you into trouble with the ATO:
• Interest expense claims ( where investors try to claim interest costs on their principal residence as well as their investment property)
• Incorrect split of rental income and expenses between owners- deductions on jointly owned properties that are claimed by the owner with higher taxable income, rather than a 50/50 split
• Properties that, are not genuinely available for rent. It’s essential that deductions are only claimed for the periods a property is rented or is genuinely available for rent.
• Holiday homes- that are not genuinely available for rent and expenses are being claimed for
Saturday, 6 April 2019