Hello Chasers,
This tax return season the ATO has a special focus on rental properties.
Assistant Commissioner Tim Loh has provided some insights as to what the ATO is concerned about.
Income and tax deductions from rental properties are one of the four key areas the ATO is focusing on this tax time.
The ATO Random Enquiry Program has found that nine out of ten tax returns that reported rental income and deductions contain at least one error, even though most of those property owners were assisted by a registered tax agent.
The ATO is therefore urging rental property owners to ensure they carefully review their records before declaring income or claiming deductions this tax time, and for registered tax agents to ask a few extra questions of their clients.
Assistant Commissioner Tim Loh explained “Registered tax agents can only work with the information they gather from their clients, and we know some clients won’t know everything they need to tell their agent. We don’t expect agents to be Sherlock Holmes, but we do expect them to ask the right questions to ensure their client’s return is right.”
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