When it comes to completing your tax return come the end of the financial year – you are entitled to claim deductions for certain expenses. Some of these deductions are commonly known, however, there are a number that are often overlooked. Here are several tax deductions that you can claim that are often overlooked.
Business owners can claim several tax deductions for their work-related expenses. To claim these tax deductions the money must be spent by the person claiming the deduction and were not reimbursed for the purchase. The deduction must relate to income earned and there must be a record of the purchase(s).
Tax deductions that you can claim include:
- Vehicle and travel expenses – this does not include normal trips between home and work.
- Clothing, laundry, and dry-cleaning expenses – this only includes occupation-specific clothing, protective clothing, and unique, distinctive uniforms.
- Home office expenses – including running costs such as electricity, and phone and internet expenses.
- Self-education expenses – this applies to those who are undertaking work related studies as an employee or those who receive a taxable bonded scholarship.
- Tools, equipment, and other assets – this includes computers and software, desks, cabinets, and protective clothing, and is not just industry and trade tools.
If the expenses you are claiming are for both work and private purposes, you can only claim a deduction on the work-related portion.
Managing tax affair expenses
Expenses that you incur while managing your own tax affairs is one of the tax deductions that you can claim that may be overlooked. This includes expenses that were made when:
- Preparing and lodging your tax return and activity statements.
- Traveling to obtain legal advice – i.e. traveling to meet a recognised tax adviser.
- You have litigation costs – including court fees, and solicitor, barrister and other legal fees.
- You have received an interest charge from the Australian Tax Office (ATO).
One of the tax deductions that you can claim is if you have made, or are making, personal superannuation contributions to a complying super fund or retirement savings account.
If you intend on claiming super contributions as a tax deduction, you must provide a valid notice of intent to your super fund or retirement savings account provider who then must acknowledge the intent in writing.
Interest, dividend & other investment income deductions
Several tax deductions that you can claim have to do with investment and shares such as:
- Account-keeping fees held for investment purposes – i.e. a cash management account.
- Interest charged on money borrowed to buy shares
- If you make payments to a forestry managed investment scheme.
For more information on claimable expenses and overlooked tax deductions that you can claim you may benefit by getting in touch with our team at BMR Business Solutions on 07 3353 7111.