The Australian Taxation Office (ATO) has issued a list of common taxpayer errors identified through its recent property management data-matching program.
The key findings from the report are as follows:
- Taxpayers are reporting net rental income (after expenses) instead of gross rental income, and subsequently claiming the same expenses twice.
- Certain properties are being omitted from tax returns.
- In cases where properties are owned by multiple stakeholders, only one owner is reporting the property, whereas all owners are required to report their share.
- Rental income from an already tenanted property is not being reported when a new owner purchases the property with the intent to occupy it.
- Capital works or depreciating assets are being incorrectly claimed as repairs and maintenance.
If you have inadvertently omitted any rental income or made errors in claiming expenses, we strongly recommend lodging an amendment at your earliest convenience.
Additionally, please note that records are typically required to be retained for five years from either the date on which they were prepared or obtained, or from the time the relevant transaction or act was completed, whichever is later.
Should you wish to discuss this matter further, please do not hesitate to contact us.
