The ATO has reminded taxpayers in a property business or thinking about investing in property that there are things they should know, such as:
- they need a clearance certificate from the supplier when buying property over $750,000;
- they may have to pay the GST on the sale of brand new residential property separately to the ATO; and
- income from property activities could increase their total business turnover.
The ATO says taxpayers with property should keep accurate and complete records where they:
- rent it out as a residential property (even short-term through the sharing economy);
- flip houses; and/or
- build a new house to sell for a profit.
In addition, when it’s time to lodge, taxpayers should remember:
- Some expenses need to be claimed over time.
- It is only possible to claim expenses for:
– periods when the property is genuinely available for rent; and
– travel related to renting property, if the taxpayer is in the business of letting properties.
Disclaimer
This publication is intended as a general commentary only and does not purport to be comprehensive. It should not be regarded as tax advice and you should not act solely on the information contained herein. Please contact AscendPoint to further discuss about your circumstances or concerns.