The Australian Taxation Office (ATO) are encouraging all taxpayers with a rental property to ensure they understand their obligations and get their claims right.
Due to enhancements in technology, the ATO have increased their ability to identify incorrect claims, and they want to ensure you don’t get caught!
They’ve provided a number of case studies and I’ll be sharing them with you over the course of five weeks, here’s case study 5*:
Apportioning expenses between joint owners of a rental property
A rental property claim was investigated by the ATO where the rental expenses has not been apportioned correctly. The rental property was jointly owned by a couple but the higher income earner claimed the larger portion of the expenses.
The expenses were adjusted to reflect the ownership interest and the higher earner had to pay back more than $8,000 in tax.
Regards
*reproduced from NTAA