The ATO is warning rental property owners that expenses shown in property manager reports may not always be classified correctly for income tax purposes.

Common issues identified by the ATO include:

• capital expenses, including initial repairs, being claimed as current-year deductions;
• expenses being grouped together without sufficient detail to determine how they should be treated;
• discrepancies in accounting methods used when expenses are actually incurred versus when they are paid; and
• private expenses incorrectly included, such as costs relating to the owners’ personal use of the property.

If you have any questions or would like to speak to one of our professional business and tax advisors, please contact our office on (08) 9392 7600 to make a booking or click here.

With four offices across Western Australia and over 20 years of experience, Acclaim Accounting is a dynamic team of highly trained and skilled individuals committed to providing innovative and effective advice, excellent service and maintaining only the highest standards in ethical professional practice.