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The Real Estate Institute of Western Australia (REIWA) has issued a reminder to property investors that the Australian Taxation Office (ATO) will be using its data matching system to find unreported income.
This system enables the ATO to collect more tax from investors by comparing property management data from software providers – such as details on rent and expenses for residential properties managed by property managers – with the information included in landlords’ tax returns.
The ATO cross-references this information with rental data from banks, insurers, rental bond authorities and sharing economy providers, to detect any inconsistencies. Property investors found to have undeclared income will be contacted for an explanation.
When lodging their tax returns, landlords need to:
* include rental properties
* enter gross rental income, not the net amount
* claim expenses separately
* include any rental income received (and deductions) when purchasing a tenanted property
* split income and expenses according to legal co-ownership shares
#accountant #tax #propertyinvestment
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