Technology has made keeping records and preparing our tax returns so much easier, but it has also made it easier for the tax man to keep a much closer watch over the affairs of Brisbane landlords.
In an address to Tax Agents in Hobart last week the commissioner Chris Jordan revealed that audits carried out have shown that almost 90 percent of property investors had made incorrect claims for deductions against property income. Mr Jordan made specific mention of overstatement of interest deductions, claiming expenses for private use of rental properties and capital expenditure being incorrectly deducted as an immediate write off being common errors.
With almost 62 percent of the astoundingly high number of 2.1 million Australian property investors being negatively geared to the tune of 3.3 billion, it’s one the tax man won’t leave alone. So if you are in doubt check with your accountant and get it right before the taxman cometh!