The ATO has recently extended its property management data matching protocol to gain deeper insights into rental property income and expenses. This means that software providers are required to give details of rent and expenses for residential rental properties managed by a property manager.
What does this mean for you?
The ATO now has more comprehensive data from banks, landlord insurers, rental bond authorities, and sharing economy platforms to identify common investment property mistakes.
Here are some of the common errors found in recent property data matching:
- instead of reporting gross rental income and claiming expenses, net rent (after expenses) is reported and the same expenses are claimed a second time
- properties are being omitted from returns
- where they are owned by multiple stakeholders, only one owner reports the property – when both are required to report
- not reporting the rental income received when purchasing an already tenanted property that the new owner intends on moving in to
- capital works or depreciating assets being claimed as repairs and maintenance.
Stay compliant and avoid penalties
Make sure your property income and expenses are reported accurately. If you need assistance or have questions, don’t hesitate to reach out to us at W Wen & Co at (02)9871 3429 . We’re here to help you stay on top of your tax obligations.