What Should You Know About Tax Deductions As Per The ATO?

1. What Should You Know About Tax Deductions As Per The ATO? Whether you are an individual or a business owner, all of you have to pay taxes on what you earn via your job or business. You try to get rebate in your tax returns when a financial year comes to an end. Such rebates or deductions are usually for work associated expenses. However, you can have some relaxations for things like charity donations, insurance, rental expenses, and tax agent fees. A sound idea over tax deductions can help you a lot to avail the associated benefits. Here are some points for your better understanding: What can you claim? The Australian Taxation Office has set some golden rules for what they can accept in your tax rebates. As per the ATO, the expanses you have done must belong to your company’s trade, but not your personal use. You have the right to claim the part of expenses that you used for operating your business if you have an amalgam of personal and company use. While claiming the deductions, you have to produce all the relevant records.

2. For instance, you shop a laptop and use it only for business purposes. As per the law, you can claim for the full purchase price by submitting a copy or purchase receipt. If you use it for both personal and company purposes, you can claim only a portion of the total billing of its shopping. What can you not claim? The ATO will never accept the deduction claim if you include expenses that are solely linked with your personal lifestyle. By following the rules, the ATO staff can reject your tax returns if you claim a deduction for expenses, such as traffic fines, personal/domestic costs, entertainment fees, and the expenses related to inaccessible property. When can you make your claim? The type of your expenses – capital or operating expenses - can help you to decide the right time to make your claim for rebates in taxes. You can claim capital expenses (equipment & machinery) and operating costs (wages and office stationery) in the year they occur. Whether it is capital or operating cost, you need to produce an invoice while making a claim. How can you claim your tax deductions? The way of claiming your tax rebates is based upon the type of the business you run. In general, you are a sole trader, trustee, company director, or a partner. You have to follow the associated rules and regulations while filing your tax returns. What can you do to claim rebates? Claiming tax deductions requires you to have a sound idea of accounting, finance, and tax rules. Without it, you can face challenges in filing your tax returns and claiming rebates. The best way for you is to find an accountant with a sound experience in company tax return and hand over this job to him/her. With this, you can be sure about having no errors and feel relaxed. Conclusion Before you proceed to claim tax rebates, you should educate yourself. Getting in touch with a professional accountant will be helpful to you. Follow his/her instructions in the entire process of claiming tax deductions.