Tax Strategies recipes
Working Through a Tax Audit
Even for trustworthy taxpayers, nothing is quite as stressful as a tax audit. While most people hope to glide under the radar of the taxman forever, the truth is that being targeted for a tax audit isn’t as unlikely as you’d think. Every year, the Tax Office writes to tens of thousands of people regarding their business or personal tax returns, asking them to review their claims, and conducts thousands of audits.
But being chosen for an audit doesn’t spell the end for you. First of all, many calls from the taxman are to simply clear up small discrepancies on your tax return. Of course, if the review reveals something just isn’t right, then you’ll have to brace yourself for the audit. The following tips will help you understand, prepare for, and work through a tax audit and come out unscathed.
What Work Expenses Can You Claim on Tax?
General tax deductions are deductions that apply to a broad segment of the tax-lodging public, and more often than not are claimed as a result of work-related expenses. These types of deductions are available to everyone, no matter their occupation. In general, work-related deductions are for items used for work or business purposes, and you can make claims of up to $300 without written proof (anything more than that will require a receipt). The following are some of the most common work-related general tax deductions you can make on your personal tax return.
Electronics can be claimed on your tax return
Calculators and electronic organisers, such as smartphones, PDAs, tablets and so forth, are fully deductible if the cost is $300 or less. If the cost exceeded this price when you bought it, then the item will need to be depreciated. Plus, you can tack on the cost of keeping the unit working, such as repairs, batteries and so on. Diaries, log books, and other stationery that essentially provides the same function are also deductible. Talk to your tax agent about how to make sure everything gets included on your return.
Making Your Business More Tax Efficient
In business, one of the most important things you need to do is make every dollar count, and a really great way of doing this is to become tax efficient. There are plenty of ways every business can become more tax efficient and take the edge off preparing the year’s tax return, and doing so can save your business a lot of money. The following are just some of the tax tips every entrepreneur should know about.
Find a trustworthy tax advisor
One of the first things every business needs to do is establish a strong relationship with a trustworthy tax return accountant and advisor. There are so many small tax tricks out there that you could benefit from, and an advisor that can show these tricks to you is worth their weight in gold. Additionally, make sure your current tax advisor is able to keep up with your changing needs. All too often, businesses continue on with the same advisor, failing to recognise that the needs of a growing business include upgrading the level of advice they get.
The Importance of Using a Registered Tax Agent
When it comes to keeping your finances in order and getting your taxes done, it’s not worth taking any risks, so if you want to ensure you don’t end up on the wrong side of the tax man, you should get your taxes done by a registered tax professional. The following are just a few of the reasons why it can prove to be so important.
Get the right amount back
There is no point having your mate do your taxes for you and tell you that you’ll be getting a massive return, when the truth will be something quite different. Not that friends can’t be a huge help when it comes to doing your taxes, but unless they know exactly what they are doing, you are likely to end up with an amount for your tax return that isn’t correct. Registered tax professionals are far more likely to know all of those unlikely places to look for an extra few dollars, which your well-meaning mate may have missed and left unclaimed for you.
Should You Keep Your Receipts For Personal Tax?
When it comes to tax time, having all of your receipts is vital to being able to get what you are owed and avoid running into trouble with the taxman. As a general rule, keep everything, and keep your receipts in the best condition that you can. Don’t let the government keep money that is rightfully yours, and check out the following tips so you can keep all the right receipts and get back every cent you are entitled to.
Work related
Anything that is related to you being able to do your job properly can often be at least partially claimed on your taxes. Clothing, shoes, car repairs, petrol, phone bills, and anything that you need for work can be considered a work-related expense — as can at least part of your rent and utilities costs if you do any of your work from home. Keep all of your receipts just in case it can be claimed on your tax return. On average, Australians claim just over $1,900 per person in work-related costs every tax year.
Smart Property Investment Basics for 2012
Along with shares, investing in residential property is one of the most favoured ways to build wealth in Australia. For many Australians, property investment forms an important part of their plans for financial security and retirement. These practical strategies will provide some useful insights for new property investors, although it’s advisable to consult accountants in Sydney or your local area for specific advice on tax and optimising your investment strategy.
Capital Gains Tax Discount
Capital Gains Tax (‘CGT’) applies to property acquired after September 20, 1985. However, there are many exemptions to this rule. For example, the main residence is not subject to CGT, and a 50 per cent discount to the CGT applies when the property is held for at least 12 months, subject to some limitations. CGT will have significant implications for investors who are intending to sell their property in the near future.
Key Tax Issues for New Employers
As your business expands and grows, you’ll need better financial advice and knowledge about compliance. If you’re a busy individual, why run the risk of delay by getting your tax return wrong? When it comes to accountants Sydney may have a lot of qualified professionals, but it’s important to find a firm that will provide you with unbiased advice, be able to serve individuals and businesses of any size, explain it all to you in plain English, and act as a one-stop point for all your accounting and finance needs. These are the top reasons you should see an accountant.
Save Time
Getting it right the first time may not only save you time but also help you with staying on the right side of the law. Whether it’s your tax return Sydney, financial advice, record keeping and compliance issues, there’s no need to waste time and precious resources by getting it wrong.
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Tax Issues for Investment Property Owners
Property investment is a great way to boost your wealth and plan for retirement. One key aspect of property investing is getting educated about tax issues, and knowing how to reduce your tax burden. Understanding issues such as negative gearing, depreciation, GST, and stamp duty can all help you maximise your income as a property owner. Tax issues associated with property investment can be a complicated matter so it’s generally recommended that you seek the assistance of professionals for your tax return Sydney if you have any doubts about your tax liability.
Stamp Duty
Stamp duty is one of the largest upfront costs associated with purchasing property. Stamp duty varies from state to state (or territory) and is calculated as a percentage of the property value, based on a sliding scale of taxation. For first time buyers, there’s often a concession to reduce the stamp duty payable.
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How to Minimise Your Tax
There are many ways to legally reduce your tax burden. Whether you’re a business owner, a property owner, or merely want to reduce your personal income tax, use these practical tips to reduce your tax burden and make the lodgement of your next tax return Sydney fuss free.
Keep Receipts
Keeping receipts and asking for tax invoices is a good practice that can save you in the form of deductions. Keep track of work-related as well as personal expensed.
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Six Tax Basics for Small Business
There are millions of small businesses in Australia, largely family-owned, and they represent the largest employer in the economy. Many people dream of leaving the workforce and running their own business, and most business owners will list tax and compliance to be key issues, especially when starting out. While regularly consulting qualified accountants is recommended for most business owners, this list gives an overview of the major tax issues to be aware of.
Record Keeping
Tax compliance starts with good record keeping. Good record keeping also helps you keep track of the growth and direction of your business.
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