All Australians dread the thought of an A.T.O. audit, and property investors are no different. Here are some tips should you ever endure such an unfortunate event.
- Don’t panic. Most audits are triggered due to a minor anomaly. You are innocent until proven guilty.
- If you have done the wrong thing, fess up and limit the damage and penalties.
- Keep receipts and have them ready for the tax office.
- Make sure you have a depreciation schedule from a quantity surveyor for each of your investment properties.
- Have a 13-week log book for motor vehicle expenses.
- Seek professional advice from a tax lawyer/accountant that has experience in tax audits.
- Prepare documents in advance – bank statements, records, invoices and receipts.