Do you have any concerns relating to rental properties that you’d like to speak with one of our knowledgeable and experienced accountants about? Give Fortis Accounting Partners a call on 02 9267 0108, or drop us a line at info@exemplary-financial.flywheelsites.com. There’s never any need to remain confused about your financial situation, we’re by your side and ready to assist at all times!
Rental properties are housing the interest of the ATO
The Australian Taxation Office (ATO) was transparent in relation to rental properties taking priority on the target list during the 2016/17 financial year, and it is expected that this focus will remain into the next financial year.
The ATO has stated that they contact 350,000 Australians each year in regards to their tax returns, a third of which relate to rental properties.
In particular the ATO are checking that:
- All rental income has been declared
- Deductions for private use have been apportioned correctly
- The property was genuinely available for rent
If you own a rental property, the ATO may still be interested in reviewing your current or previous lodged returns, despite whether they are accurate. You can protect yourself against the professionals fees that can be incurred as a result of ATO scrutiny – ask the team about our Audit Shield service and how you can participate.
Case study of an Audit Shield service participant
The ATO were reviewing rental property income and deductions of a lodged return of a taxpayer who owned multiple rental properties. The Audit Shield service participant declared deductions for repairs and maintenance, in addition to claiming a portion of personal use on one of the properties.
At the conclusion of the ATO review, the declarations of the participant were substantiated and there were no adjustments made to the lodged return, however professional fees of $7,500 were nonetheless incurred in attending to the response process with the ATO. Luckily, Audit Shield covered the total of the incurred costs for the participant on this occasion.
