The ATO has reminded taxpayers in a property business or thinking about investing in property that there are things they should know, such as:
- hey 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.