The ATO's looking out for three major things this tax season! Here's the down low.
There’s exactly one week left until the ATO’s deadline of 31st October to submit your tax return.
For many of us doing a tax return is a lot like doing homework, we end up leaving it till the last minute.
So if you haven’t touched your tax return yet with the deadline creeping close, you’re not alone.
But when the deadline is THIS close, it can be tempting to cut corners. As tempting as it might be, Flux Fam, the ATO has got some pretty sophisticated data analytics tools to pick up on any returns that look a bit suss.
That little bit of harmless number-fudging can end up really ‘taxing’ you (pun definitely intended). Which is why it pays to take your time and be sure all the details are accurate.
This year, the ATO is cracking down HARD on three key things that keep cropping up in incorrect tax returns..
If you’re planning to claim work-from-home expenses this year ya better start hitting the paperwork!
While working from home has become more normalised since the pandemic, many people are still claiming work-from-home expenses like we’re in 2020.
This year, taxpayers are going to need to provide the ATO with more detailed documentation and calculations for their work-from-home expenses.
So if you made any tax-deductible work-from-home purchases, make sure to include all your receipts in your tax return.
The ATO also wants to make sure that people aren’t copying and pasting their work-from-home deductions from last financial year as some of the calculations have changed.
Believe it or not, property investor deductions were found to be incorrect on 9/10 tax returns according to ATO assistant commissioner, Tim Loh. Yikes!
And this isn’t just bringing investment property owners into the spotlight, but also their agents, as 87% of rental property owners use registered tax agents.
The ATO’s specifically eyeing people who’ve incorrectly portioned their loan expenses in their tax deductions.
For example, let’s say you have taken out a loan for your investment property, but part of that loan is also dedicated to financing your car.
In this case, you can only claim a tax deduction on the interest incurred on the portion of the loan that’s dedicated to the investment property.
Capital gains tax needs to be paid when you dispose of an asset like shares, properties, or crypto.
When you dispose of an asset, you need to accurately calculate the capital gain or loss incurred.
Usually your main residential property is exempt from CGT.
But if you’re using your home to produce income, think: running a home business or renting out a room on Airbnb, then ya might be subject to CGT when you sell the property.
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