ATO turns attention to property ‘rorts’

As the financial year draws to a close, the Mortgage Business ran a timely article today with regards to the Tax Office’s focus on appropriate deductions for investment properties.

With interest rates at historic lows, the Australian Taxation Office is targeting the 1.8 million Australians who own an investment property, on the hunt for tax misdemeanours.

The type of property investment as the tax office is focused on the type of deduction and whether it is appropriate for your circumstances.

“Whether it’s a commercial property, a city pad rented out long term or a holiday retreat for family, friends and holiday-makers, the ATO has signalled a big push to check that people aren’t over-claiming tax deductions,” said H&R Block director of tax communications, Mark Chapman.

This is a timely reminder that if you are in doubt about the appropriate of any deductions on your investment property you should seek professional advice.