September 2022 Newsletter
Please click on the following link to view this month's newsletter for September 2022. We would like to highlight the following articles:-
Tax time focus on rental properties
Rental property income and deduction mistakes continue to be one of the main focus areas for the ATO 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. The ATO is therefore urging rental property owners to ensure they carefully review their records before declaring income or claiming deductions.
Rental Income - The ATO receives rental income data from a range of sources including sharing economy platforms, rental bond authorities, property management software providers, and state and territory revenue and land title authorities.
Taxpayers need to ensure all rental income is included, such as from short-term rental arrangements, renting part of a home, and other rental-related income like insurance payouts.
Rental Expenses - It is important to note that not all expenses are treated the same. Some expenses can be claimed straight away, such as rental management fees, council rates, repairs, interest on loans and insurance premiums. Other expenses such as borrowing expenses, plant and equipment and capital works need to be claimed over a number of years.
SMSF COVID-19 relief measures have now ceased
The ATO has reminded trustees of self managed superannuation funds that COVID-19 relief measures that previously applied for the 2019–2020, 2020–2021 and 2021–2022 income years no longer apply from 1 July 2022. The relief measures covered a wide range of areas, including residency requirements, rental reductions and waivers, rental deferrals, in-house assets, loan repayments, limited recourse borrowing arrangements, and related party transactions.
Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.