ATO increases focus on rental property deductions
The ATO has advised that it will have an increased focus on rental property deductions this Tax Time.
It says that it will be paying closer attention to excessive deductions claimed for holiday homes in 2015, and will also be actively educating rental property owners about what they can and cannot claim.
For example, the ATO will be writing to rental property owners in popular holiday locations, reminding them to only claim the deductions they are entitled to, for the periods the property is rented out or is genuinely available for rent.
The ATO said that it recently amended a taxpayer’s return to disallow deductions claimed for a holiday home after discovering that:
- the taxpayer rented the home to family and friends during the year at less than market rate;
- except for a brochure which was only available at the taxpayers’ business premises, there were no realistic efforts to let the property;
- the nightly rent advertised was much higher than that of surrounding properties; and
- the pattern of income did not match the advertised rate, or the requirement for a five-night minimum stay.
The ATO decided the property was mainly used by the taxpayer, and deductions were limited to the amount earned from family and friends.
Interested in joining our team? Why not apply today?
About Our Traineeships:-
Join the Market Leader in 2016 – Accounting Traineeships
Looking to study a B.Com at University of Newcastle in 2016?
Bottrell Business Consultants are a Multi Award Winning Firm
We have 2016 Traineeships available – work 3 days Study part-time 2 days
Apply now to Tara Skippen on email@example.com – send resume & cover letter
www.bottrellaccounting.com.au or check us out on Facebook, Twitter, Instagram or LinkedIn
Offices – East Maitland | Newcastle | Sydney | Melbourne | Brisbane | Gold Coast
Bottrell Business Consultants Pty Ltd – Chartered Accountants and Business Advisors.
The Bottrell group incorporates Bottrell Business Consultants, Bottrell Accounting & Taxation, Maitland Accounting & Taxation, East Maitland Accounting Services and Mobile Bookkeeping & Recruitment.
Our group of businesses & links include the following companies (& our websites);-