What is tax planning? Essentially, tax planning is something you do to put your business into the best possible tax position. After all, nobody... Read more
We will see greater scrutiny and monitoring for key deductions in the new year of 2018 tax returns, as Altitude Advisory Partner Kristen Buik explains.
We are about to see a much greater level of scrutiny, surveillance and monitoring for key deductions in the new year of 2018 tax returns. With the help of data-matching and analytics, the ATO will focus on work-related expenses as well as rental property claims, specifically new rentals claimed in the coming tax year.
The ATO allege tax payers often ‘over-claim’ when it comes to cars, home office, clothing and laundry. When it comes to preparing your 2018 tax information, ensure that you meet the rules for a legitimate claim.
There will also be increased scrutiny on the proportion of personal-to-business use in a claim, particularly relevant for small businesses.
One of the biggest areas of concern is claims for rental properties and holiday homes. The tax office will be watching for disproportionate claims of reported income to expenses, specifically relating to interest deductions where a portion of the loan is personal in nature.
Be mindful of the new rules denying deductions, both travel relating to rental or holiday homes and any depreciation on second-hand assets purchased after May 12, 2017.
Phillip Cross, Royce Cross Agencies
Luke Talbot-Male, Adventures Beyond