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. |
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