Get Every Possible Deduction This Tax Year
As tax time approaches, make sure you’re ready to claim all the deductions you’re entitled to. These include the following:
Travel. If you use your own car for work related duties, you may be able to claim a deduction for related expenses. There are two ways to calculate these deductions; using a logbook or the cents per kilometre method. Either way, make sure you are tracking all of your travel throughout the year to make it simpler at tax time. In most circumstances, you can’t claim the trip to and from work.
Clothing, laundry and dry cleaning. You can claim on the cost of purchasing and cleaning uniforms and other work related clothing. It needs to be clothing specific to your work (such as safety clothing or a shirt with a logo on it) and not just general black pants or a white shirt that matches a work dress code.
Home office expenses. Instead of recording all of your actual expenses for heating, cooling, lighting, cleaning and the decline in value of furniture, you can claim a deduction of 52 cents for each hour you work from home. This rate is based on average energy costs and the value of common furniture items used in home business areas. To claim using this method, keep records of your actual hours spent working at home for the year, or keep a diary for a representative four-week period to show your usual pattern of working at home.
Internet and phone. You can claim work related internet and phone costs, including a portion of costs if you use them for both private and work purposes. You’ll need to keep a record for over four weeks in order to make a claim larger than $50.
Overtime meals. You can claim on meals you need to pay for in order to work overtime. You need to keep the receipts to claim the meal.
Self education. You can claim on training you undertake as long as it will specifically improve your performance at work or allow you to increase your income, not just be generally related to what you do.
Tools and equipment. You can claim on computers, calculators, desks, chairs, power tools, hard hats, safety glasses and other equipment you need to purchase to do your job.
General expenses. You can claim on union fees, income protection insurance, books, conferences, background checks and other fees you incur to carry out your work.
Instant asset write off. Are you aware of the recent changes to the instant asset write-off eligibility criteria and thresholds? Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.
While this is a general introduction to the key areas you can claim deductions on, there’s a lot more detail depending on specific circumstances.
Contact us today so we can explain how you can maximise your return in each of these areas.