ARE YOU AWARE ABOUT THE TAX DEDUCTIONS YOU MAY BE ABLE TO CLAIM?
Everybody knows that to reduce their tax bill, they need to claim as many genuine and justifiable tax deductions as possible in their tax return. The trick is in knowing what deductions you can legitimately claim.Most people know that there are some legitimate expenses that can be claimed, but all too often legitimate tax deductions are not claimed simply because people are unaware that they are allowed to claim them.
The key point to remember is that in order to claim an expense, you need to be able to demonstrate that the expense is work related and that it came out of your pocket.Obviously it’s important that you keep all receipts so you can substantiate all your claims.
Here are some items that you may not realise are claimable in certain work situations.
This is a tricky area. There are specific rules that apply pertaining the eligibility to claim this deduction. Essentially; if you invest in education that will in turn assist you in your current career, thereby creating an opportunity to progress in your field of work and increase your expertise and knowledge, then you may be entitled to education expenses as a deduction. Legitimate claims could include text books, course fees and stationary amongst others.
When you subscribe to a publication or other form of media broadcast, that is relevant to your career, the chances are that you can claim the cost of the subscription. Paid memberships to business associations or trade unions are also claimable.
If you conduct your business from home, then you may be able to apportion some of the costs associated with electricity, gas, water and even council rates to legitimate business expenses. Other related costs may include home insurances and Internet bills. To be eligible to claim occupancy expenses and related costs your working from home should qualify as a place for business. There are rules that specifically determine whether your home business/occupation can be classified as a place for business or not. Generally speaking if you have clients visiting you, you have a sign outside, the location is listed on local directories, there are chances that you may be eligible to claim occupancy related costs including utility bills.
IF your workplace requires specific footwear for protection or comfort, you may be able to claim the cost of shoes. Nurse’s footwear and trades people’s footwear are good examples of work related footwear that may be legitimate work related expenses.
Other items for consideration may include uniform laundry costs, mobile telephones, car expenses and even make up and artwork in some circumstances.
Tax law can be confusing and relying upon your own research may either see you miss out on legitimate claims or get into hot water with some inadmissible claims.
Professional help with preparing tax returns in Melbourne is at hand with A one accountants Melbourne.