If you are high income earner and have -ve geared IPs,
is there a reasonable taxable income you shoud keep to make ATO happy.For example, you earn 90K a year and claim 85K deduction for loss and depreciation on your IPs. That wiil result in 5K taxable income. Will the ATO come and audit you ?
Anyone has this situation ?
Any suggection to keep ATO from auditing ?good question
im pretty sure alarm bells would start ringing.
if the deductions are legit though – who cares?
sounds like you dont want an audit??
aussierogue
Nobody likes ATO auditing.
Do you ?
Someone who had been audited, said ‘They (ato tax men) are bxxtxxd’. Even though you didn’t do anything wrong, you won’t feel comfortablw with them.Hello,
At the end of the day, if you can substantiate yor claims, then you really have nothing to worry about.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auI don’t think it would matter. They would see how many properties you are claiming for and if the claims are within the generally accepted limits then you wouldn’t stick out.
(I have a client who earns more than $100,000 but has a taxable income of almost $0. I have just introduced him to the concept of +ve cashflow properties and he is now very keen and doing his research. He can’t afford anymore -ve geared. as he said to me, if he were to lose his job and all the deductions, he would be stuffed.)
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
G’day,
As long as you can justify your deductions, and they are legitimate, then why wouldn’t you reduce your taxable income!?
Make sure that you keep all receipts, and a list of the expenses and you should be fine.
It should be noted that you don’t need to be making a loss to get a deduction. If there is a legitimate expense that you have incurred in trying to make an income, then it is claimable.
I’m not an accountant, but I have been assured that this is the case. You can also take out insurance incase you are audited. This will pay for your accountant to work on your behalf at the audit, and I think a portion of the premium is tax deductible.
Having worked for a government department in the past I wouldn’t worry too much upon them even discovering it, let alone worrying about it.
The audit scare is largely a hoax to use fear to make you think carefully about what you claim. You know, like God is watching over you.
Do you know how many audits are actually conducted? How unlikely it is that you will be audited?
You are more of a chance of being audited if they have a general concern about your accountant. This is the most likely way that you will be audited (which is still very remote).
Now I’m started to get interested, how can you earn $100K and have a taxable income of $0 How do you live day to day and pay the normal house hold bills. I run a farm at at loss(as well as my $100K job)to maximise my tax return I’ve just purchased a IP that will be -ve geared. I’m very interested in +ve gearing after watching Steve on Today tonight but I see it as a big jump for me from -ve to +ve I’ve ordered “the book” and maybe when it turns up all will be revealed.
The topic ‘Reasonable Taxable Income & ATO Auditing’ is closed to new replies.
