Rental property and you -case study 2

????????????????????????????????????????????????????????????????????????????The Australian Taxation Office (ATO) are encouraging all taxpayers with a rental property to ensure they understand their obligations and get their claims right.

Due to enhancements in technology, the ATO have increased their ability to identify incorrect claims, and they want to ensure you don’t get caught!

They’ve provided a number of case studies and I’ll be sharing them with you over the course of five weeks, here’s case study 2*:

Interest

Rental property owner Sarah reported high rental interest claims and was required to provide bank statements as evidence to the ATO.  The statements showed borrowings well in excess of the purchase price of the rental property.  The interest charges relating to the private part of the loan were disallowed.

Sarah was required to pay more than $15,000 back to the ATO.

Don’t be like Sarah!

Here’s case study 1

Regards

LMB_TAXCHIC_BLOGSIGN_TFB_Final

*reproduced from the NTAA

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