ATO Cracking Down on Work From Home Landlords

The Tax Office is focusing its attention on specific areas this tax season, particularly targeting landlords who inflate claims for rental deductions and individuals who incorrectly claim work-from-home expenses. Assistant commissioner Rob Thomson emphasizes the importance of accuracy, urging taxpayers not to rush their returns on July 1st, as this often leads to omissions of income sources. Read more about this in the full article from AccountantsDaily. Key points from the article are:

• Rental deductions are under scrutiny due to widespread inaccuracies, with repairs and maintenance claims being a common issue.

• Capital expenses, such as significant property improvements, cannot be immediately deducted and must be claimed over time.

• Taxpayers should review their records thoroughly or seek assistance from registered tax agents to ensure correct deduction claims.

• Changes to work-from-home deduction rules require comprehensive record-keeping, including actual hours worked and additional running costs incurred.

• Rushing to lodge returns on July 1st increases the likelihood of errors, particularly for taxpayers with multiple income sources.

• Waiting a few weeks to lodge can prevent unnecessary delays caused by later amendments and ensures accuracy in tax returns.

Make sure you understand how and when work from home expenses apply to you. Contact us if you would like more detailed advice on your situation.