ATO Focus 2019

Image by Harry Strauss from Pixabay

The ATO focus for this year is largely upon rental properties.  A random audit of rental property was conducted and the ATO found errors in 9 out 10 of the samples checked.  The main problems the ATO found were:

Over-claimed interest

It is important that when you take money out of your home loan account for something other than maintenance, repairs or improvements to the house itself that you account for this personal drawing when calculating interest.  For example, if you decide to buy a new car and extend the mortgage to do that, then the amount you borrowed for the car needs to be converted to a percentage of the overall loan and that percentage of the interest is no longer tax deductible.

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