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 4*:
Ethan was required to provide evidence to the ATO to show that his property was genuinely rented at market rates. Ethan was unable to provide any documentation to show that a rental agreement was in place.
All rental income and expenses were removed from his tax return and he received a tax bill of more than $12,000.
Don’t be like Ethan.
*reproduced from NTAA