The Labor Party is advocating to change the negative gearing policy in the next election, the proposal changes would involve limiting the deductibility of rental loss against other assessable income to new properties only, however, whether that particular legislation can be passed is still a question mark.
Lower the audit risk of investment property tax return by using a rental agent
The Risks of Self-Managing Your Rental Property
Many property owners try to manage their investment properties themselves to save on rental agent fees. However, this decision can create complications during a tax audit. If the Australian Taxation Office (ATO) audits your investment property, they will require evidence of rental income. This includes bank statements and rental contracts.
If the ATO reviews your bank statements, they may discover additional income sources not initially included in the audit. Another risk arises if you lack proper record-keeping habits. If you fail to provide the necessary records during an audit, you may face a high level of risk due to insufficient substantiation evidence.
Benefits of Hiring a Real Estate Agent
One major advantage of hiring a real estate agent is that their fees are tax-deductible for the financial year. Additionally, agents provide a rental statement at the end of the year, summarizing your rental income and expenses.
Real estate agents can also handle payments for water and other fees, keeping receipts for these transactions. If you lose any invoices, the agent will have copies, which can be invaluable during a tax audit.
Expert Tax Assistance for Investment Properties
As one of the most trusted tax accountants and tax agents in Ashfield, Sydney, we specialize in handling investment property tax return. We offer a free 10-minute tax review of your past investment property tax return to ensure they were completed correctly.
For professional tax assistance, call us at 0410-829-900 or email hello@endurego.com.
