Tax - Late rent paid in next financial year

[Azazel]

Hey guys, I have a question that's hurting my brain a little bit.
Of course an accountant would sort it out in about 5 seconds.
If a tenant moved out owing rent, caught up with some late rent paid to the RE in late June 13, but the money didn't clear into your account until the 1st of July, would you include that amount in 2013/14 or would it go into 2014/15 income?

 

[Propertunity]

....but the money didn't clear into your account until the 1st of July, .....

Did not arrive in your account? or arrived earlier, but as uncleared funds?

 

[Terry_w]

date received

 

[Azazel]

date received

Thanks for the reply Terry.
So it's Ok to use your own figures and not the 'Profit and Loss statement' from the Real Estate rental manager?

 

[Rob G.]

If RE is acting as your agent then you are deemed to have received it when they did.

s.6-5(4) ITAA97 constructive receipt.

 

[Azazel]

Did not arrive in your account? or arrived earlier, but as uncleared funds?

I guess the RE transferred it earlier, but it didn't appear on the statement/uncleared funds until 1st July.

If RE is acting as your agent then you are deemed to have received it when they did.
s.6-5(4) ITAA97 constructive receipt.

That sounds reasonable.

 

[Paul@PFI]

If RE is acting as your agent then you are deemed to have received it when they did.

s.6-5(4) ITAA97 constructive receipt.

I'm with Rob on this. Agents are your "agent". Some agents can also withhold and leave funds in credit on their trust account. This is still income. Its still your $. On trust.

What peeves me is agents that charge owners a high fee for a year end statement causing them to then ask this question. ALWAYS ensure you have their annual statement even if it costs $22. This avoids such questions.

 

[Terry_w]

I agree with Rob too. If it is recieved on your behalf you have derived the income at that time.

 

[Azazel]

Great, thanks guys, I'll put it in my 2013/14 spreadsheet.
I need to have this done before May, is that correct?

 

[Paul@PFI]

Depends.....If you have a tax agent and they are 85% ontime and depends on any debt too and when you pay the tax.

If all clients think they can lodge in May they will all be penalised.

 

[Rob G.]

I need to have this done before May, is that correct?

Have you arranged with a registered tax agent before 31 October 2014 to go on their lodgement program ?

 

[Azazel]

Have you arranged with a registered tax agent before 31 October 2014 to go on their lodgement program ?

Not as yet, no...
1st return with an IP. At lease we don't owe money.