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Deferring Rental Income

Discussion in 'Accounting & Tax' started by Hedgy, 1st Sep, 2016.

  1. Hedgy

    Hedgy Well-Known Member

    Joined:
    6th May, 2016
    Posts:
    62
    Location:
    Sydney
    Greetings and salutations fellow Prop Chat members.
    Just curious to get the thoughts of those in the know.
    For one of my IPs I asked my MA to hold and not transfer to my bank account the rental money for the months of May and June of this year. My MA paid the May and June rental money into my bank account mid July of this year. I'm currently working with my accountant and he tells me that even though my MA received the May and June rental money, but didn't transfer the money to my account until mid July, I still need to declare the May and June money as income for FY15/16. Am I stupid to think that because the May and June rental money didn't hit my bank account until mid July it should form part of income for FY 16/17?
    Thanks.
     
  2. Daniel Taborsky

    Daniel Taborsky Well-Known Member Premium Member

    Joined:
    10th Nov, 2015
    Posts:
    147
    Location:
    Perth, WA
    Hedgy and Perthguy like this.
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
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    8,952
    Location:
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    The agent receives the money in their trust account - at this point it is your money!

    Daniel is right about your accountant being right.
     
  4. Hedgy

    Hedgy Well-Known Member

    Joined:
    6th May, 2016
    Posts:
    62
    Location:
    Sydney
    Bummer:( Thanks for your insight gents. Definitely a trap for young players hey. There I was thinking the test was merely when the money hit my account.