ATO on property investments
The ATO has reminded taxpayers in a property business or thinking about investing in property that there are things they should know, such as:
- they need a clearance certificate from the supplier when buying property over $750,000;
- they may have to pay the GST on the sale of brand new residential property separately to the ATO; and
- income from property activities could increase their total business turnover.
The ATO says taxpayers with property should keep accurate and complete records where they:
- rent it out as a residential property (even short-term through the sharing economy);
- flip houses; and/or
- build a new house to sell for a profit.
In addition, when it’s time to lodge, taxpayers should remember:
- Some expenses need to be claimed over time.
It is only possible to claim expenses for:
– periods when the property is genuinely available for rent; and
– travel related to renting property, if the taxpayer is in the business of letting properties.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.