Page tree


 

 

Tax provides 2 rental schedules:

  • Rental Property Worksheet (ren) for Companies and Funds

  • Rental property schedule (rep) Individuals, Partnerships and Trusts

The ATO requires that a Rental schedule be prepared and lodged for each rental property that is the subject of assessable income/loss:

  • Individuals: rental schedule B must be lodged for individuals with rental income.

  • Companies: companies with rental income may use the Rental Schedule for Individuals to assist with their calculations, but they are not obliged to do so. This schedule does not integrate to the Company return.

  • Partnerships and Trusts: rental schedule BR is used for Partnership and Trust returns. Schedule BR is the same as Schedule B except it includes extra questions relating to the property.

Whilst the rental schedule is available for companies, funds, trusts and partnerships, it is not required to be lodged electronically for these entities.

Rental property worksheet (ren)

The following Information relates to those completing this schedule for Company or Fund returns.

Companies and Funds with rental income may use the Tax Rental worksheet to assist with their calculations but they are not obliged to do so.

The schedule does not integrate to the main return, nor is it lodged with the return either electronically or paper lodgment. There is no integration from it to any label in either the Company or Fund return.

There is no facility for automatic sharing of the Net Rental Income as that is not appropriate for Company and Fund entities, this means that rounding is not an issue as there is no 'share' requirement.

The fields, other than the Income and Expenses fields, are for record keeping purposes only and are self-explanatory.

The worksheet is completed in the same manner as a Profit and Loss statement would be.

For information on Shared Ownership, click the link.

For information on how to complete the rental schedule, see Completing the Rental Schedule.

Rental property schedule (rep)

The following Information relates to those completing this schedule for Individual, Partnership or Trust returns.

The ATO requires that a Rental schedule be prepared and lodged for each rental property that is the subject of assessable income/loss.

  • Individuals: Rental Schedule (B) must be lodged for individuals with rental income.

  • Partnerships and Trusts: Rental Schedule (BR) is used for Partnership and Trust returns. Schedule BR is the same as Schedule B except it includes extra questions relating to the property.

Rental Schedule Function

Where the property is co-owned, Tax creates one 'Host' schedule and on distribution as many 'Destination' schedules as there are owners in addition to the host. Everything is entered in the host schedule:

  • full details of income and expenses

  • name and TFN details of all co-owners

  • rates of apportionment between the co-owners

Once completed the host schedule shows both the full income and expenses and once the distribution has been performed the host's share of income and expenses. The share is integrated to the rental labels in the host's main return. If the co-owners are included in your practice's Tax ledger, destination schedules showing their share and where it has been distributed from will be created and the share(s) integrated to their returns. For co-owners who are not clients of the practice, notification of their share will need to be provided by either the agent or one of the other co-owners.

Potential Rounding Errors

When properties are co-owned and an automatic distribution is performed, rounding errors are likely to occur, depending on the number of co-owners and/or the percentage due to each owner. The number of separate balances in the schedule is in excess of 21. Each balance has the potential to cause a rounding problem when distribution to co-owners is involved.

To minimise the problem, Tax provides the facility to choose how rounding is to be adjusted between the various returns. The ATO is aware of the issue and has adopted a tolerance for rounding so that discrepancies of a few dollars will not be a concern at audit time.

For information on Shared Ownership, click the link.

For information on how to complete the rental schedule, see Completing the Rental Schedule.