The ATO regularly states it is having a crackdown on rental property expense claims. Please be mindful of keeping relevant receipts and records for claims.
The areas that the ATO are focusing on are:
- Initial capital improvements claimed as repairs.
- Loan interest being claimed while the property is not available for rent.
- Taxpayers estimation their own construction cost instead of relying on an independent qualified person. The recent 2017/2018 budget will only allow depreciation of equipment for rental properties purchased from the 1st of July 2017 if it is a new rental property built or a new equipment item purchased.
- Claiming interest on loans that are not directly related to the property purchase.
- Travel expenses are not being apportioned correctly taking into account private use. All rental related travel is proposed to be disallowed from the 1st of July 2017 according to the 2017/2018 budget.
Contact a member of the Southern Business Solutions team if you have any questions 8186 8444 of firstname.lastname@example.org