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Re: Amend tax return to include land tax

Newbie

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After an SRO review, a client has received a land tax assessment that relate to the 4 previous years.  The property has since been sold.  Is it appropriate to amend each tax return to include the land tax relevant to that year or amend the latest return to include entire amount of land tax levied? 

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Devotee Registered Tax Practitioner

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After an SRO review, a client has received a land tax assessment that relate to the 4 previous years.  The property has since been sold.  Is it appropriate to amend each tax return to include the land tax relevant to that year or amend the latest return to include entire amount of land tax levied? 

 

Tax deduction in the year that the expense was incurred, so that looks like the year that the assessment notice was received.

 

If property was rented, or producing business income, then land tax deducible  -  even after property sold.

If property was not producing income, then it land tax is capital  =>  amend CGT tax return.

 

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Most helpful response

Devotee Registered Tax Practitioner

Replies 0

After an SRO review, a client has received a land tax assessment that relate to the 4 previous years.  The property has since been sold.  Is it appropriate to amend each tax return to include the land tax relevant to that year or amend the latest return to include entire amount of land tax levied? 

 

Tax deduction in the year that the expense was incurred, so that looks like the year that the assessment notice was received.

 

If property was rented, or producing business income, then land tax deducible  -  even after property sold.

If property was not producing income, then it land tax is capital  =>  amend CGT tax return.