ATO Gives Four Tax Tips to Property Investors

Property investment is one of the key areas the Australian Taxation Office has said it is focusing on this tax season.

The ATO Random Enquiry Program found that nine out of ten tax returns that reported rental income and deductions contained at least one error, even though most of those investors used a registered tax agent.

To make sure property investors get their tax returns right, the ATO has provided four pieces of advice;

First, declare all your income, including from Airbnb and rental bond payments, because the ATO almost certainly has data on these transactions and will catch you if you don't.

Second, get your expenses right. Some can be claimed straight away (such as property management fees), while others can only be claimed over a number of years (such as capital works).

Third, if you sold your investment property during the 2021-22 financial year, you need to report whatever capital gain or loss was made.

Fourth, you need to keep all relevant records for at least five years, in case the ATO asks you to prove any of your claims.

For more information, visit the ATO page for property investors.

or Contact Jason from Mortgage Innovations for smart financial solutions