Audited by ATO for unrealistic I.P expenses?

[donkey]

Has anyone ever been audited for taking the **** on expenses for one's I.P

I feel I might have over estimated my 'travel expenses'... I moved to another area of NSW and thus had to fly (return), car hire etc to do an inspection on my I.P

I suppose I'm worried that the ATO systems might compare previous years figures and think that Im taking the **** a bit. Would this trigger an audit?

Have you ever been audited before?

Is it common for the ATO to conduct audits on us aussie battlers who own I.P's?

 

[coastymike]

Donkey

Shouldnt be a problem even if you were audited. If the primary purpose of the trip was to inspect the ip and discuss the property with the manager then the flights, car hire etc should be deductible.

If you did other things e.g stayed for 5 days and spent 1 day on property managers then that is more of an issue.

Agreed an increase in anything can trigger an audit questionnaire as the starting point but if you have all your receipts and documentation to substantiate the claim you will be fine.

 

[marg4000]

My brother was frequently audited for travel expenses related to his job. He kept meticulous records and was able to pass any questioning.

As said, so long as you did a same day trip then there should be no issue. As an inspection would only take 20-30 minutes, it would be hard to justify much more. Once you add on anything more then you are on shaky ground.
Marg

 

[chilliblue]

We were audited once but had everything documented and all was fine.

 

[Mush]

Surely it would be fine to do a longer trip provided you only claimed proportionately? (i.e travel expenses,3 meals,1 nights' accommodation).

 

[ChrisA1]

On a side question, are these types of ATO audits covered by landlord insurance? (or maybe I'm blowing hot air and am better signing up to my accountant's audit shield service...)

 

[wategos]

Is it common for the ATO to conduct audits on us aussie battlers who own I.P's?

IP owners can't really be called Aussie battlers...

 

[D.T.]

IP owners can't really be called Aussie battlers...

wooosssshhhh

 

[marg4000]

Surely it would be fine to do a longer trip provided you only claimed proportionately? (i.e travel expenses,3 meals,1 nights' accommodation).

No, the ATO looks at the main purpose of the trip.

If you travel to visit relatives, or holiday, or any other reason, then you will only be able to claim (at most) 1 day car hire as the purpose of the trip was to visit relatives and only the part specifically related to the IP is claimable.

To have the fare deductible the SOLE purpose of the trip must be IP related. The length (and cost) of the trip will be the giveaway.
Marg