End of financial year: ATO puts out tax guides for property investors and real estate employees

The Australian Tax Office has released updated guides for property investors and real estate employees (estate agents and property managers) to help them complete their end of financial year tax returns.

The 2012 Rental Properties guide explains how to treat rental income and expenses, including how to treat more than 230 residential rental property items.

Among the things it will help landlords determine:

• which rental income is assessable for tax purposes
• which expenses are allowable deductions
• which records they need to keep
• what they need to know when they sell their rental property
• what expenses are not deductable

It also includes information about capital gains and goods and services taxes, negative gearing, pay as you go (PAYG) instalments and the effects of the general value shifting regime.

The 2011-12 real estate employees guide (a series of links, not a download) provides a simple summary of ATO tax rulings covering allowances, reimbursements and work-related deductions.

It explains the claims estate agents and property managers can and cannot make by looking at the common expenses they might incur as a real estate employees.

It also includes information about some changes to the tax laws that have occurred since the ruling was issued - for example, capital allowances and will real estate employees work out what claims they can make.

The property investor guide can be downloaded here

The estate agents guide is accessed here (click on the table of contents link on right hand side of page).

The full version of the ATO ruling on real estate industry employees can also be downloaded.