What's new for 2021?
This year the Australian Taxation Office focus on rental properties will primarily be on Non Arms Length arrangements. In other words if the tenants are family or a related party and the rent fee appears lower than market rate and interest is being claimed. They will also look to scrutinize large claims of repairs or improvements depreciation.
Claims for travel expenses in relation to inspecting, maintaining or collecting rent have been disallowed from 1 July 2017 onward.
New owners of a property after 9th May 2017 will be unable to claim depreciation deductions for equipment purchased and installed by a previous owner of that property. Existing claims may continue to be made.
Add to this that the Australian Taxation Office continues to raise the degree of their audit activity with increased scrutiny on rental income and making sure that properties were genuinely available for rent when the expenses were incurred. This makes it harder for individuals to prepare and lodge their own tax return.
To that end they have publicized their guidelines for claiming rental property deductions.
The good news for you is that I continue to be focused on keeping up to date with the ever changing taxation landscape whilst getting the best results possible for you.
To ensure that your tax refund is not denied or reduced by the ATO, I strongly recommend that you give attention to the documentation requirements concerning the claims that you are likely to make in the 2017 income year. This means ensuring that you have your receipts or other substantiating documents on hand to justify your claims.
I continue to strive to make my service exceptional – so contact me to book either your: in-home, telephone, email or drop-and-go tax appointment at your earliest convenience. I look forward to hearing from you soon.
This year the Australian Taxation Office focus on rental properties will primarily be on Non Arms Length arrangements. In other words if the tenants are family or a related party and the rent fee appears lower than market rate and interest is being claimed. They will also look to scrutinize large claims of repairs or improvements depreciation.
Claims for travel expenses in relation to inspecting, maintaining or collecting rent have been disallowed from 1 July 2017 onward.
New owners of a property after 9th May 2017 will be unable to claim depreciation deductions for equipment purchased and installed by a previous owner of that property. Existing claims may continue to be made.
Add to this that the Australian Taxation Office continues to raise the degree of their audit activity with increased scrutiny on rental income and making sure that properties were genuinely available for rent when the expenses were incurred. This makes it harder for individuals to prepare and lodge their own tax return.
To that end they have publicized their guidelines for claiming rental property deductions.
The good news for you is that I continue to be focused on keeping up to date with the ever changing taxation landscape whilst getting the best results possible for you.
To ensure that your tax refund is not denied or reduced by the ATO, I strongly recommend that you give attention to the documentation requirements concerning the claims that you are likely to make in the 2017 income year. This means ensuring that you have your receipts or other substantiating documents on hand to justify your claims.
I continue to strive to make my service exceptional – so contact me to book either your: in-home, telephone, email or drop-and-go tax appointment at your earliest convenience. I look forward to hearing from you soon.
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