ATO is contacting Residential Investors – BEWARE!
The ATO has issued an early warning again this year. As tax time is nearing to an end for EFOY16 (yes that was quick), the ATO is reminding all residential property and holiday home investors to get in order your deductions as they intend to review this sector for discrepancies. Refer to the following link: : https://www.ato.gov.au/Tax-professionals/Newsroom/Your-practice/Deductions-for-rental-property-owners/?tpissue-10-2016
In particular, all your expenditure and capital allowances must be recorded, apportioned correctly and accurately in accordance with the current legislation. If you have made some profit in selling your investment property this financial year, the transaction may have resulted in a capital tax gains (CGT) event, and if not treated properly could result in a larger tax payment due than originally thought. You must also have sufficient evidence your property was income producing thus providing you a trigger to claim any deductions. Refer to the following link for a detailed explanation of what you may require for EOFYS 2016 on your residential property: https://www.ato.gov.au/General/Property/Residential-rental-properties/ Continue reading
New and Effective Lives of Plant Slashed by the ATO – Effective 1 July 2016
Following my previous Blog on December 15 – “Effective lives of Assets in Car Parking” , The ATO has once again been hard at work reviewing the effective lives of plant in particular property and other industry sectors. They have proposed to implement the following new determinations and be effective as of July 1 2016.
The ATO has researched and established new effective lives of depreciating assets for an industry sector named Robotic Milking Systems (which comes under the ANZSIC sector of Dairy cattle farming (ANZSIC code 01600).
Refer to this link, if this is of interest to you. Continue reading
