ATO: Property Investment Records Essentials

ATO on property investments

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

  • they 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.

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