Do you own a rental property and want to maximize your tax refund? Many property owners have been claiming deductions for years. However, this year, the ATO will focus its audit attention on tax return and investment property claims.
Ensure your deductions comply with ATO guidelines to avoid potential audit issues.
Maximize Tax Position in Ashfield and Inner West Sydney
ATO Issued $1.3 Million in Penalties in 2018
In the 2018 financial year, the ATO issued $1.3 million in penalties to over 1,500 taxpayers. As one of the most trusted accountants and tax agents in Ashfield and Inner West Sydney, we help property owners maximize tax benefits while ensuring compliance with tax laws.
Increased Audits on Rental Property Tax Returns
The ATO discovered errors in 9 out of 10 tax returns that included rental properties. As a result, they plan to increase audits to 4,500 this year.
Common Errors in Tax Return and Investment Property Claims
The ATO has identified two major issues among rental property owners:
Overclaiming rental deductions – This includes:
Claiming travel expenses for a rental property in the FY2018 tax return, which is no longer allowed.
Claiming interest expenses on a combined loan account when part of the loan was used for personal purposes (e.g., refinancing an owner-occupied home and later converting it into a rental property).
Underreporting rental income – Many landlords, especially those using shared accommodation services like Airbnb, fail to correctly declare their rental income.
Depreciation Rules for Rental Properties
From 1 July 2017, depreciation claims changed:
Second-hand dwellings – Owners can only claim building write-off depreciation and cannot claim deductions for plant, equipment, or non-fixed assets.
New dwellings – Owners can claim depreciation deductions for both building write-offs and plant and equipment.
Get Expert Help to Maximize Your Tax Deductions
If you own a rental property and claim deductions in your tax return, consult a trusted accountant and tax agent to ensure compliance and maximize allowable deductions.
📞 Call us at 0410-829-900 or 📧 Email JC@endurego.com for expert tax assistance!
