ATO Rental Data Matching
The ATO’s Property management data-matching program helps the ATO to identify and address a number of tax risks, including:
- failure to lodge – taxpayers with a rental property may fail to lodge a tax return and their rental property schedule on or before the relevant due date
- omitted or incorrect reporting of income – taxpayers with a rental property may omit or incorrectly report income and deductions in their rental property schedules and associated income tax return labels
- omitted or incorrect reporting of capital gains tax (CGT) – taxpayers with a rental property may omit or incorrectly report cost base elements which are used to determine the net capital gain or loss on a rental property used to generate income.
Over the coming months, the ATO will be sending letters where their data indicates:
- tax returns including rental income may need to be lodged for specific years
- rental income should be included in previously lodged tax returns.
With that in mind it’s important to declare the gross rental income and agent management fees and any other expenses should be shown separately as an expenses.
If you have any questions or concerns related to investment property rental income, don’t hesitate to get in touch with us at STS Accounting.
