APS Education Tax Specialists (ETS) would like to offer our clients to participate in our Audit Protection Service (APS).
Audit Protection Service covers the professional fees incurred when an accountant assists a client to respond to an audit, review or investigation of tax returns lodged with the Australian Taxation Office (ATO). Audit Protection Service provides cost effective protection and peace of mind, again the substantial cost that may be incurred should the ATO select a lodged return for enquiry, review, investigation or audit.
The ATO has again signalled that the work related expenses (WRE'S) are at the top of its audit list. The ATO claims it looks out for deductions that seem high or excessive compared with your income and claims that are "outside the regular pattern" for a particular job or industry. , eg teachers! If you purchased or sold an investment property in the past year, pocketed some of those resources stock profits or continued to take losses on that place you rent out, expect a letter from the ATO.
People who own shares or investment properties can generally expect to be targeted by the ATO this year. The ATO has issued the warning saying the boom in both stock market and the investment property market is largely to blame for the increased scrutiny.
Some of the common income tax deduction mistakes include:
Claiming the cost of carrying out initial repairs on faults that existed at the time of purchasing your investment property as immediate deductions.
Also, claiming renovation costs as deductions for repairs which are really capital improvements, such as remodelling bathrooms and kitchens and adding a deck or pergola.
Overstating interest deductions by including amounts related to private borrowings - interest on a loan taken off for both income producing and private purposes, such as the purchase of a rental property and a private motor vehicle, needs to be apportioned into deductible and non-deductible parts according to the amounts borrowed for the rental property and for the private purposes.
Not apportioning travel costs where a visit to inspect the rental property is combined with another purpose, such as a holiday.
We emphasize that there is no compulsion for you to purchase our Audit Protection Service, however we do recommend that you do participate in this offer as all our professional fees and costs in preparing the relevant documentation and responses on your behalf to the ATO and other related bodies will be covered under this program. These costs could be substantial given the numerous hours involved.
The service will cover our costs for the current year income tax return and all previous income tax returns prepared by our office. The service will commence on the date we receive your payment. The service will be offered to you on an annual basis.
Should you have any queries in respect of this offer, please do not hesitate to contact our office at on on our toll free number on 1800 035 081 or email us at enquiries@specialistax.com.au don't forget to also visit our website at specialistax.com.au.