July 2008
PROPERTY MANAGEMENT NEWS FROM THE TEAM
Dear Owners,
I have information about Australian Taxation Office (ATO) and rental deductions that I’d like to share with you, which I hope can help you.
In the REINSW Journal July 2008 “Rental Deductions under the Microscope”, mentioned that ATO will pay special attention to rental deductions on tax returns this year.
The ATO plans to examine 6,000 at-risk cases where material amounts have been claimed and will contact tax agents whose clients have unusual patterns of rental claims.
CPA Australia’s senior tax counsel, Mark Morris said most rental deductions can be claimed as a deduction in the year incurred. These include interest, body corporate fees, property’s agent commission, council rates and repairs and maintenance. However other expenses must be claimed over a number of income years, such as borrowing expenses.
The cost of rental assets such as furniture and fittings must also be depreciated over their effective lives, and deductions for the costs of construction certain rental premises and other capital works must be claimed over their statutory lives.
Kind regards,
Viona Viona (Director)