Tax time is approaching for the year ending June 2019. Now is the right time to consult your accountant and ensure your financials are in order prior to lodging your tax return.
We encourage property investors to act promptly. The Australian Tax Office (ATO) has said “they’re going to be looking much closer at your tax returns this year”.
The ATO conducted a random sample audit identifying 90% of tax returns submitted by property investors contained errors. As a result, the ATO advised that they intend to double the number of audits to determine if the tax deductions have been applied appropriately. They are looking to identify if property investors are over claiming interest, dishonestly claiming capital works as repairs, under claiming rental income etc.
The ATO will target property investors by reviewing the relevant data that they can collate from the banks, rental bonds, property purchases etc.
Investing in property is a rewarding asset, but you must ensure you are administrating the income and expenses of it correctly. If you need assistance with an introduction to an accountant, please don’t hesitate to contact us.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
May 2019
