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The quiet property and tax homework you might have missed

By Reporter · May 28 2019
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ATO
The quiet property and tax homework you might have missed

The quiet property and tax homework you might have missed

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By Reporter · May 28 2019
Reading:
egg
egg
egg
ATO

Business owners who have used their property in a different way since originally intended after purchase may have some extra legwork on their hands.

If you have claimed GST credits on property purchases, you may need to report adjustments in your June activity statement.

The amount of GST credit you can claim on a purchase or importation depends on the extent to which it is used for a “creditable purpose”.

The creditable purpose of a purchase changes if either there is a difference between how you planned to use it and how you actually use it, or the way you use it has changed over time.

Right now, the ATO is reminding owners to check if they have changed the use of their property from how they originally intended, as they will need to make an adjustment.

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The ATO is also reminding owners who have built a property for sale and rented it out while finding a buyer that they need to keep records to show they are holding the property for a “dual purpose”. This dual purpose represents the intention to rent the property while actively marketing it for sale.

For a comprehensive breakdown of how this works, you can view the ATO’s guidance here.

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