Deductions
A recent audit by the ATO of 300 tax returns, that included a rental property, found that 9 out of 10 reviewed had errors.
Errors included:
- the incorrect amount of interest being claimed where it had been refinanced for private purposes
- the incorrect classification of capital works as repairs and maintenance
- taxpayers not apportioning deductions for holiday homes when they were not genuinely available for rent
- income omitted by taxpayers or over-claimed deductions for short-term rentals. The ATO has been examining data provided by online rental platforms.
- claiming for the cost of travel to the property for inspecting, maintaining or collecting rent unless they are carrying on a business of property investing or are an excluded entity.
For further advice, contact our office.
