Nine out of ten rental property owners are getting their tax returns wrong. This is according to the Australian Taxation Office (ATO) which has issued a warning to landlords to take care when submitting their tax returns.
According to the ATO, around 87% of landlords use a tax agent, so it is important you provide your agent with accurate and up-to-date information.
The ATO has reminded landlords that rental income must be included in the year the tenant pays, not the year the agent handed the money over.
Repairs, maintenance and improvements are also under the spotlight as the ATO cracks down on what is deductible and when.
The ATO is focused on ensuring rental property owners understand how to correctly apportion loan interest expenses in cases where the loan has been refinanced or used for private purposes.
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