The ATO has recently disclosed their focus areas for the year, as is customary during this time. Among these areas, rental property dodgy deductions stand out as an issue that has garnered the attention of both the ATO and accountants in Sydney, and we have previously cautioned you about it in the past – rental property dodgy deductions.
The ATO will double the number of audits of rental property deductions, with particular attention being paid to the following:
- Interest claims to ensure the loan was used to purchase the property, not just where the loan is secured by the property, but was used for something else.
- Repairs to ensure they are not capital costs or initial repairs.
- Deductions on properties which are not rented out at total market rent as they are leased to friends or family.
- Record keeping to ensure there is proof of all deductions.
The next target is Cryptocurrency! The Commissioner has given notice that it will collect data from cryptocurrency-designated service providers under notice to identify individuals or businesses who have or may be engaged, in buying, selling or transferring cryptocurrency during the 2014/15 to 2019/20 financial years. The data matching aims to ensure that taxpayers are correctly meeting their reporting, taxation and superannuation responsibilities in relation to those transactions. This includes registration, lodgement, reporting and payment responsibilities.
If you have any concerns, don’t hesitate to contact your S & W client manager.
Kreston Stanley Williamson Team
*Correct as of July 2019
Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.
