In the news recently, the ATO is chasing some scenarios to ensure that what the taxpayer tells them is matched by the evidence.
Determining the tax treatment of a property transaction can sometimes be a difficult exercise and there are a number of factors that need to be considered. This will often include the intention or purpose of the taxpayer when acquiring a property. However, merely stating your intention isn’t enough, it needs to be supported by objective evidence. This might include loan terms, correspondence with advisers and real estate agents, the way expenses have been accounted for, or the conversation you have with a journalist.
An example of this scenario can be seen in the Sutton Farms case study overview provide by The Knowledge Shop.
