The Australian Taxation Office (ATO) has released key focus areas for 2021/22 including:
Commercial property owners could benefit from taking a few simple steps.
Having organised income and deduction records will make for a smoother tax time and ensure you claim all possible deductions. Remember you’ll need income and expense statements, invoices, depreciation, purchase contracts, and any costs to manage, acquire or dispose of an asset.
Rental Income and Deductions
Ensure you include all income on your return including any deferred rent repayments, short-term leasing arrangements, licensing, insurance payouts, interest on bond held in an interest-bearing account, etc.
If you dispose of an asset such as property, shares or cryptocurrency, you will need to calculate a capital gain or loss, and record it in your tax return. This is generally determined by rationalising the difference between what your asset originally cost and the funds received upon disposal.
Don’t Rush It!
The ATO reports seeing the greatest number of errors in returns that are lodged in July. Most of these mistakes relate to forgetting to include bank interest, fees and charges, dividend income, business grants, etc. For the majority of people, this information will be automatically pre-populated in their return by the end of July.
Clients of the award-winning Property Management team at Ray White Commercial Bayside receive detailed monthly statements, supporting documents and an annual Financial Summary to help make completing tax returns hassle-free.
To find out more about how we can help with financial monitoring and reporting of your commercial property, call the team at Ray White Commercial Bayside today.
The above is general information only, and is not personalised for unique needs, objectives or financial situations. We recommend engaging a professional tax agent who is experienced in commercial property investment before taking any action.