The priority areas for the ATO for the upcoming “Tax Time” 2022 have been announced. The ATO will be focusing on:
• Work-related expenses
• Rental property income and deductions, and
• Capital gains from crypto assets, property and shares.
Not many surprises there.
When it comes to the ATO’s focus on record keeping and work-related expenses the ATO provides a reminder on the three ‘golden rules’ for claiming deductions:
• The taxpayer must have spent the money and not been reimbursed.
• If the expense is for a mix of income-producing and private use, taxpayers can only claim the portion that relates to producing income.
• They must have a record to prove it.
Capital gains from crypto assets, property and shares. If you dispose of an asset such as property, shares, or a crypto asset, including non-fungible tokens (NFTs) this financial year, you will need to calculate a capital gain or capital loss and record it in your tax return.
Tax practitioners should also be aware that the ‘shortcut’ method for claiming home office running costs is still available for the 2022 year. While this method can potentially reduce the compliance burden for clients and practitioners, it won’t necessarily provide the best outcome for clients.