Despite being aware of the rising cost of living, the ATO is carefully watching taxpayer deductions to prevent over claiming. The ATO is ensuring that taxpayers are not claiming home office expenses that are not technically related to work, such as Tim Tams, doggy day care, or Ugg boots. The ATO is also investigating another tax evasion scheme known as “Wash Sales.“
We, as the leading CPA accountants in Inner West Sydney (Ashfield) and Belrose Northern Beaches, can help you ensure you maximize your deductions while staying out of trouble with ATO.
ATO for FY2022 is focusing on wash sale of assset, hence what is it and what implications do it have.
Wash sales occur when taxpayers sell assets, such as cryptocurrency or shares, before the end of the financial year. After a short period of time, the taxpayer reacquires the same or substantially similar assets, resulting in a loss that can be offset against any gain already derived—or expected to be derived—in the tax return.
ATO’s sophisticated data analytics can identify wash sales through access to data from share registries and crypto asset exchanges. When the ATO detects this behavior, it rejects the capital loss, resulting in a larger loss for the taxpayer.
The ATO also warns tax advisors who promote wash sales or other tax avoidance schemes that they could face action from the Tax Practitioners Board.
Tax time is coming, hence with the so much change in regulation come and as the leading cpa accountant in inner west sydney Ashfield, belrose northern beaches please come and see us and we will sort the tax for you.