You may encounter error code CMN.ATO.TRT.442903 when lodging a trust tax return if the trust has business activity code 67110 - Residential Property Operators. This error arises specifically around the application of 9-year build-to-rent capital works deductions calculated at 4%, and the related rental schedules.
Explanation:
The Australian Taxation Office (ATO) requires that trusts claiming build-to-rent capital works deductions must provide detailed rental schedules and correctly classify the business activity to reflect this specific property operation.
When the trust’s business activity code is set to 67110 - Residential Property Operators, it triggers a conflict because the build-to-rent deduction schedules are expected but missing or mismatched.
Solution:
To fix the error and successfully lodge the trust return:
Change the Business Activity Code:
- Do not use the code 67110 - Residential Property Operators.
- Also avoid using 30190 (if previously applied).
- Instead, select an alternative business activity code that appropriately reflects the trust’s operations but does not conflict with the build-to-rent deductions requirements.