10 Aug ATO warning on property manager reports

The ATO is warning rental property owners that expenses shown in property manager reports may not always be classified correctly for income tax purposes. 

Common issues identified by the ATO include:

• capital expenses, including initial repairs, being claimed as current-year deductions;
• expenses being grouped together without sufficient detail to determine how they should be treated;
• discrepancies in accounting methods used when expenses are actually incurred versus when they are paid; and
• private expenses incorrectly included, such as costs relating to the owners’ personal use of the property.