ATO focus on rental properties

The Australian Taxation Office (ATO) have highlighted that income and deductions from rental properties remain a key area of focus.  They have found that 90% of tax returns reporting rental income contain at least one error.
 
Ensuring taxpayers are correctly disclosing all income and claiming the correct deductions relating to rental properties has been an area of the ATO’s focus for several years. Their data matching capabilities have been expanded with them now able to source information directly from sharing economy platforms (e.g., AirBnb), rental bond authorities and property management software providers.
 
The ATO raise some common issues in relation to rental properties in their media release which may be of interest and can be found here.
 
The following articles cover some of the issues the ATO have raised:

• Getting interest deductions right when you may have refinanced a loan or drawn down on a loan for private purposes  
• Incorrectly claiming the main residence exemption or not disclosing a capital gain correctly on your tax return 
• Subdivisions and developments - the issues to consider
• Interest deductions may be denied in relation to vacant residential land 

 
Your Moore Australia Advisor can assist with any questions or concerns you have and provide guidance on deductions available to you.