It's time to think about the annual Tax Return preparation
Below are some points to remember when preparing Returns
All accountancy fees for the preparation of your Tax Return or any advice received.
All bank fees on all accounts including government charges.
Books and Magazines
All technical books, magazines and journals which related to your income.
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 68 cents per km.
Only special protective clothing, not Driza-bone coats or jeans.
Software under $1000 is fully deductible, over that amount is depreciable.
Any plant and equipment such as car, computers, printers, cameras - costing under $30,000 - is for companies: small business enterprise is 100% depreciable.
Movie tickets are 50% deductible.
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.
Personal accident, equipment and portion of home office.
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.
Always needed for business - also magazines and journals.
Parking & Tools
Deductible if work related.
Includes couriers and freight.
See Home Office.
If related to business, are fully deductible.
Education is deductible if there is a direct connection between the course and your work.
Use an account at the local newsagent to record costs.
Bus, rail, car, plane. Overseas travel requires a travel diary with full details.
Telephone & Internet
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 tickets are 50% deductible, but only your ticket.
The machine itself is depreciable, also the video machine, but generally only 50% is deductible.
Videos, Foxtel & Streaming Services
Please note that the above does not constitute professional advice. For all issues regarding taxation please contact our office.