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Maximize your Investment Property Tax Return and Stay Safe

Do you own a rental property, and always want to maximize the tax refund using the rental properties, chances are you had been doing that for the many years you had owned the rental property, however, this year, ATO will focus its audit attention on the tax return and investment property.

Maximize Tax Position in Ashfield and Inner West Sydney

In the financial year 2018, ATO issued $ 1.3 million penalties to over 1500 taxpayers. We had written an article about the different types of penalties that ATO charges, as one of the most trusted accountants and tax agents in Ashfield and Inner West Sydney, we are here to help you maximize your tax position with your rental property, while at the same time, ensure you are doing everything correctly.

ATO also claimed that they had found 9 out of the tax returns containing rental property have errors, hence they want to increase its audit to 4500 this year.

ATO had released its views on that they found that many rental property owners had either overclaimed rental deductions and/or under-declared the rental income. In terms of over-claiming rental deductions, it would include claiming a  travel expense for a residential dwelling in the FY2018 tax return, when it is not allowed to; claiming interest expense on a combined loan account, where one of the loan accounts’ purpose is not for the investment property, this would include when you have a loan taken out for an owner occupied house, and later you refinanced it and top up and use that money to buy another bigger house, which you would use for owner occupied, and you would treat the first house as a landlords investment property.

One of the areas of concern would also be depreciation expense, from 1 July 2017, second-hand dwellings only can claim depreciation expense for building write-off, and can not claim a deduction for depreciation on rental property for plant and equipment, or non-fixture. For new dwellings, it can claim deductions for depreciation for building write-offs and also on plant and equipment.
ATO also is focusing its tax audit attention on shared accommodation services landlords like AIRNB and others, and they believe most of the landlord did not declare their income correctly.

Hence if you have a rental property, and is claimed deduction in the tax return, it is important to see one of the most trusted accountants and tax agents in Ashfield and Inner West Sydney, and we can help you to lower your tax and maximize the allowable deductions for the rental property. Talk to us at 0410-829-900, or email us at