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ATO Assistant Commissioner Tim Loh has revealed the four areas the ATO will be focussing their attention on for the 2022 income tax year. What are they, you ask? Well without any further ado…
Remember, trading in crypto can give rise to capital gains or losses – sometimes even unbeknownst to the investor, and by the sounds of it, the ATO is ready to pounce on these mistakes. If you want a little refresher of what constitutes a capital gain even when it comes to investing in crypto, please refer back to our earlier article here.
If you took a hit with your trading towards the second half of 2022, and you ultimately recorded a loss, just a reminder that this is treated as a capital loss, and it cannot be used to offset any personal income.They can be carried forward, however, and be used to offset any future capital gains.
Make sure your record keeping is crystal clear and provide your accountant with all information relating to your crypto trading. Information and records will be key here! As usual, the Attune team can help ensure your records are full and correct, so if you’re concerned about yours, reach out and we can assist.
One third of all taxpayers claimed WFH expenses in last year’s tax return, and as a result, the ATO expects to see other types of work-related expenses to reduce, like car and travel costs for example. You can’t have your cake and eat it too!
Be mindful of the different methods you can use to claim aWFH deduction for the 2022 financial year:
1. The shortcut all-inclusive rate;
2. The fixed rate method; or
3. The actual cost method.
Once again, the Attune team is perfectly placed to assist you with ensuring that your deductions correct to help avoid future pain or scrutiny from the ATO, you can always call us on 1300 866 133 to make an appointment if you’d like assistance.
The ATO will be paying close attention to this section of your tax return this year, and they will be on the lookout to make sure you are declaring all of your rental income. This includes short term rental income(such as Airbnb properties), insurance payouts and any rental bonds you retain.
Be sure to keep good records in relation to your rental properties, as there is a chance the ATO may ask for more supporting documentation before they process your tax return this year!
Assistant Commissioner Loh has warned that they will be data matching information they receive from banks, insurers, share-economy companies(like Uber) and online marketplaces (like Airbnb), and crypto trading information supplied by exchanges.
With so much information available online, there isn’t much the ATO won’t know about, so it’s important that your income tax return agrees with this information. If there is a mismatch of data, you can all but guarantee the ATO will be knocking on your door.
He has also provided three golden rules we all must adhere to when completing our tax returns for 2022:
1. You must have physically spent the money yourself and you weren’t reimbursed
2. If the expense is a mix of business relate and private use, you can only claim the portion that relates to producing income.If you use your mobile phone to call mum and dad, this means you can’t claim100% of your phone costs!
3. You must have a record to prove it.
While warnings like this may seem stern, there’s no reason why lodging your tax return needs to be stressful. With the Attune team on your side, we’ll ensure the process is as pain free as possible and with the right information and records in hand, even Assistant Commissioner Loh will be happy for you. For help with your tax this year, give us a call on 1300 866 133 or send us an email.
