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Tax Tips

It's time to think about the annual Tax Return preparation

Below are some points to remember when preparing Returns 

Accountancy Fees

All accountancy fees for the preparation of your Tax Return or any advice received. 

Bank Charges

All bank fees on all accounts including government charges. 

Books and Magazines

All technical books, magazines and journals which related to your income. 

Car Expenses

All car expenses except travel from home to first place of work and private travel. The best way is to keep a log book for 12 weeks with detailed car trips; the business percentage in these 12 weeks is the percentage deductible over the full year's expenses (one log book lasts five years). If you use your car for less than 5000km per year, use the cents per km method at between 63 and 75 cents per km, depending on the engine capacity. 

Clothing

Only special protective clothing, not Driza-bone coats or jeans. 

Computers

Software under $1000 is fully deductible, over that amount is depreciable. 

Depreciation

Any plant and equipment such as car, computers, printers, cameras - costing over $1000 - is depreciable. If it costs less than $1000 it can be claimed 100% in the year of purchase. 

Films

Movie tickets are 50% deductible. 

Home Office

A home office could be part of the lounge room, but preferably a totally separate office area. The key is the proportion of the office area to the whole home, and if you work a lot at home, then there is the use of the kitchen and bathroom. The expenses to be apportioned include rates, rent, mortgage interest, cleaning, gardening, repairs, electricity, gas and so on. However, there are CGT disadvantages should you sell your home and you have claimed mortgage interest and rates.  

Insurance

Personal accident, equipment and portion of home office. 

Meals

Entertainment is mostly non-deductible, however finger food and morning and afternoon teas in your home/office are, or if you send someone out for a coffee and drink it in the office. Meals interstate or overseas are deductible. 

Newspapers

Always needed for business - also magazines and journals. 

Parking & Tools

Deductible if work related. 

Postage

Includes couriers and freight. 

Rent

See Home Office. 

Seminars

If related to business, are fully deductible. 

Self Education

Education is deductible if there is a direct connection between the course and your work. 

Stationery

Use an account at the local newsagent to record costs. 

Subscriptions

Professional organisations. 

Travel

Bus, rail, car, plane. Overseas travel requires a travel diary with full details. 

Telephone & Fax

Home phone should be apportioned between private and business, but a mobile will generally be fully deductible. A separate fax/modem line is fully deductible. 

Theatre

Theatre tickets are 50% deductible, but only your ticket. 

Television

The machine itself is depreciable, also the video machine, but generally only 50% is deductible. 

Videos

Video rental is 50% deductible.  

 

Disclaimer:

Please note that the above does not constitute professional advice. For all issues regarding taxation please contact our office.