This tax season the ATO has announced it is targeting four key areas:
- Record-keeping
- Working from home related expenses
- Rental property income and deductions, and
- Capital gains from crypto assets, property, and shares.
The ATO has given the following guidance as how to avoid scrutiny.
Record Keeping:
- Make sure you have records to prove that you spent the money and were not reimbursed by your employer
- If the deduction has a personal component, make sure you apportion it and can show how that calculation was worked out.
Working from home related expenses:
- Use one of the three methods available
- Shortcut method
- Fixed Rate method
- Actual cost method
Rental income and deductions
- If you own a rental property make sure you disclose all income received, including insurance payout and bond money that you keep.
Capital gains from crypto assets, property and shares
- If you sell cryptocurrency, NFTs, property or shares, regardless if you made money or not you still need to report it on your tax return.
- If you sell one cryptocurrency for another cryptocurrency you still need to report this gain or loss on your tax return by converting the AUD dollar value at the time of the transaction.
