ATO Crackdown By DFJ Real Estate 10/09/2022 2:38pm According to the ATO Random Enquiry Program, nine out of 10 rental returns have errors, even when lodged by a registered tax agent. The ATO urges all rental property owners to review their records before declaring income or claiming deductions. The ATO automatically receives and cross-references property owner rental data from various sources such as sharing economy platforms, rental bond authorities, property management software programs, state and territory revenue and land title authorities. When lodging your tax return, you must declare all rental-related income, including the below that may sometimes be missed: Rent bond refunds Insurance payouts Letting & booking fees Short-term rental income Income from renting part of a property Tenant payments for repairs & utilities In addition to rental income, it is equally important to ensure you get your expenses right. Not all expenses are the same. Some can be claimed immediately, such as management fees, council rates, repairs, interest on loans and insurance premiums. Other expenses such as borrowing costs, capital works, and depreciating assets must be deducted over time. You must also be mindful of withdrawing personal funds from your investment loan redraw facility.