My wife and I bought our first property in 2012 for $449,500 which we lived in for around 18 months. We then turned it into an IP before we sold it for $369,000 in 2016. we’ve had our PPOR for some time now and have just bought our first IP and currently in the process of pre approval for our 2nd IP. When we were doing our tax return this year with a new accountant (who didn’t have much of an idea of the investment property side of things). I asked her about the capital loss we had in 2017. she looked through our previous lodgements and found our then accountant claimed all the rental expenses and everything to do with the property but didn’t lodge the capital loss and put the claim through as our PPOR. it’s after the amendment date. How do I go about fixing this? It’s $70,000 which is fairly significant on the CG sides. Do I try and contact the accountant from them to lodge something to get this rectified? Thanks
Just because it wasn't recorded doesn't mean it didn't exist. Just keep records and record it going forward and expect an audit - which shouldn't be a problem
Capital losses dont have to be amended and the ATO wont accept a out of time amendment anyway. They can be claimed in the present year. The tax adviser surely knows this ? Depending on the calculations there may even not be a loss to claim. s118.192 would have reset the costbase in 2014ish when it started as a IP. You have a valuation basis at that time in that calc ? If the tax adviser isnt sure on property and taxes...... then they may not be savvy with property CGT issues either. I have seen such issues and found thre was actually a gain and the use of the absence rule was of merit to avoid paying taxat that time. Clients sometimes dont understand or remember and jus think of "I bought it for $400K and sold it for $380K so I must have a loss". The use of the absence rule and other issues needs a revisit too eg spouse also had a property that was their former home etc....
Yep, I’m all new to this and going forward I won’t be going to her again, especially now I’m going to have current IP’s.
