So many Australians miss out on property tax deduction claims every year. Tax depreciation on property investment is a legitimate deduction which the government allows you to claim. Due to the of lack of information on investment property depreciation rules, tax savings worth thousands of dollars are missed out.
Claiming for a tax deduction on the value of your property seems difficult but with the help of a professional expert, it can become really easy. Claiming depreciation can make a huge difference in a property investor’s cash flow. Despite all of this, it is most often missed.
That is where DEPPRO comes in.
What can be Done to Not Miss Out on Tax Depreciation Claims?
In Australia, only 30% of property investors claim deductions for the depreciating value of their property. It is nothing but a non-cash expense which you can claim every year on your property depreciation. You do not need to spend any cash to make this claim.
You are claiming on the declining value of your building or asset. Of course, there are certain conditions like any other tax deduction. If you have a residential property which was built before 1985, then you can claim depreciation on Division 40, Depreciating Assets only. But if it was built after 1985, then you can claim under Division 40 as well as Division 43.
The Tax Depreciation Schedule
A Quantity Surveyor is an official who is professionally qualified to produce a legal tax depreciation schedule by the ATO. It includes the following two divisions:
Division 40: Depreciating Assets: This element of property depreciation schedule is all about assets like plant and equipment, lights, fans, carpets, floating floorboards, smoke alarms, air conditioners, refrigerators and so on. Every item which has a diminishing life is included in this. The tax deduction calculation, according to the investment property depreciation schedule ATO, is carried out based on the effective life of the items.
Division 43: Capital Works Allowance: The immovable parts of the structure like the building, walls, roof, swimming pool, built-in furniture, toilets etc. are a part of this division. The investment property depreciation rules state that this capital works allowance is calculated on the basis of the construction cost of the building and not the current purchasing price. So if you are buying a property, you can claim a deduction based on the original construction cost while the building was made.
How Can DEPPRO Help You?
We have been in the industry for more than 12 years now and have a passion for tax saving. Our team has industry-leading skills and can assist in all areas of investment property taxations. We are always updated and are well-versed with all the latest Australian Taxation Office (ATO) rulings, investment property depreciation rules, and interpretations for our clients.
The property depreciation schedule made by us ensures that our clients get maximum tax benefits and at the same time it complies with all the latest ATO regulations. If you have the property of your own and make money owning it, get a qualified surveyor immediately to perform a tax depreciation schedule. We have offices all over Australia. Contact the one nearest to you today!
https://deppro.com.au/wp-content/uploads/2019/02/apartment-ceiling-chairs-1571460.jpg7721200adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2019-02-20 04:02:372019-02-20 04:02:37Are You Missing Out On Tax Depreciation Claims?
Have you invested in a rental property in Australia which was built in a year preceding 1987? If so, then things might be different for you than for those who bought their property in the following years. You may be confused in regards to getting a tax depreciation report from one of the qualified tax depreciation surveyors in your city.
Is obtaining a quantity surveyor’s report worth the effort, time and money? Read on to find out.
What Does a Depreciation Schedule Involve?
A quantity surveyor is a dedicated professional who works on depreciation schedules and the capital allowance of investors. When they complete both, it includes two essential elements: equipment depreciation and capital work deductions.
What Is Capital Works Deduction and Why Is It Important?
Capital works deduction is a form of tax deduction which relates to the structural aspects of a building. These include irremovable or fixed assets like tiles, doors, sinks, windows, walls, roof, etc.
Because it is next to impossible to remove these assets, capital works deduction, in the tax depreciation reports, assumes its importance. This prevents an investor from feeling the pinch on their finances at the subsequent stages.
Is there any Hard-and-Fast-Rule Related to Quantity Surveyors which one Needs to keep in Mind?
For the successful generation of these reports, it is imperative that tax depreciation quantity surveyors, who undertake the responsibility, are registered tax agents. This is all the more important in view of the fact that the information in the document relates to particular tax advice.
How Getting A Quantity Surveyor’s Report Helps?
According to the current version of tax legislation in Australia, any residential or commercial property built before September 15, 1987, and July 20, 1982, respectively, are not eligible for deduction.
As a result, an investor may not even consider the need to obtain a surveyor’s report if their date of purchase of property does not make them eligible for it.
However, it is a good idea to enquire about the possibility for a deduction, even if the property in question is 100 hundred years old. Owners of old properties carry out renovations more often than not, and this makes an investor eligible to make depreciation claims after its purchase.
A new buyer can file a claim for it in the event the previous owner carries out any repair or renovations on it after the aforementioned dates for residential and commercial properties.
So, as you would have come to know, getting a depreciation report is your best bet to make a claim for it in a timely manner.
Whether it is ATO guidelines or other tax depreciation laws in Australia, things keep changing from time to time. Therefore, it is a good idea to get in touch with depreciation service firms such as Deppro Perth. While you may spend a little in terms of fees, the dividends it may pay can make it worth the investment.
https://deppro.com.au/wp-content/uploads/2018/02/pexels-photo-313691.jpeg9601280adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2019-02-18 00:03:262019-02-18 00:03:26Is it Worth Obtaining a Quantity Surveyor Report?
Every investor invests their wealth into a property to earn profitable returns and this is a story prevalent since years. However, this becomes a little tricky with older properties such as an older building. Due to wear and tear from time to time, its value diminishes over time. Wear and tear of a property is a constraint that is considered at all times when you plan to sell out a property. Depreciation tax benefit serves as one of the valuable means to promote the value of commercial or residential property for investors.
If you have invested in a property of late, depreciation can help you to not only retain its value but also get you more out of it. By lowering the overall tax liability, you can save hundreds to thousands of dollars every year on your taxes.
Tax Depreciation Adds Value to an Existing Building or Structure:
It is important to bear in mind that tax depreciation does not enhance the value of land. It maximizes the value of a property, especially an old building which is subject to wear and tear. Because it may necessitate renovation or maintenance at the subsequent stages, things can get expensive on the part of an investor. Tax depreciation on such properties can help you keep things under your control in terms of charges involved in repairs or renovation.
Tax Depreciation Does Not Involve Any Upfront Payment
Being a noncash deduction, depreciation does not necessitate the payment of upfront charges. However, to overcome various legal hurdles, it is imperative that you gain an understanding of requirements related to depreciation. This will provide you with the right idea to improve the cash flow of your investment.
Tax Depreciation Helps an Investor Conceal a Cash-Positive Rental:
Depreciation has an interesting spin-off. To elude the possibility of paying an extra amount of money, you can use the tricks of the trade linked to the Australian tax depreciation. By following this simple rule, you can make cash-positive rental look like a loss on paper. Of course, you need to reach out to the right consultant to take advantage of this feature.
What Should You Do to Reap the Benefits of Depreciation?
If you wish to enjoy the positives of depreciation on investment property ATO, the most important thing you need to do is follow the rules. This will help you keep abreast with the ways in which you can benefit from depreciation in the best possible manner.
Because it is easier said than done to deal with the ins and outs or the technical details of the rules related to depreciation, you should consider hiring a professional. Think about consulting an accountant to ensure that your practices are in line with the rules. This is the sure-fire way to benefit from depreciation as an investor.
https://deppro.com.au/wp-content/uploads/2019/02/architecture-building-daylight-206172.jpg8001200adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2019-02-06 03:51:382019-02-06 03:51:38How Does Depreciation Add Value to Your Investment?
Depreciation is an amount which is an acquired cost upon the asset’s original value corresponding to the service life of the asset. Over the years for which a company uses a machine, it becomes next to impossible to spend on a single asset for one long period. Therefore, it is essential to depreciate the allocation of the budget over the depreciation expense. It is one of the most under-employed rights which are available to property investors.
Tax depreciation schedules differ from other deductions that relate to property investment. It is a deduction that you can claim without much costs in a year. In general, you can pay a one-off fee and receive a 40-year depreciation schedule. Your analyst can use it each year to overcome your taxable income legitimately.
Advantages of Tax Depreciation Schedule
You can break a depreciation schedule into two divisions. One is the capital works and plants, and the other one is the article. The capital works continue to be the productive structure cost, any improvement or addition and frequently permanent assets that form an element of the construction or enclosing buildings.
These assets usually depreciate beyond 40 years and further form the ‘backbone’ of the depreciation statement. The factory & articles, called as plant and equipment, are the movable assets such as glass furnishings, devices, carpeting, exhaust coolers, fire bells, etc. These assets decrease at varying proportions based on the kind of asset and their shelf life as decided by the depreciation on investment property ATO. The shelf life of these valuable items falls between 5 and 15 years. This is the principal reason for the fall of more notable depreciation claims in the early years.
What are Tax Depreciation Schedules For?
Depreciation schedules can be altered to maximise certain advantages under the Australian tax law. These include the direct write-offs, low-value pooling and in taking the support of various partners and raised thresholds. After the inspection is complete and the data is accumulated under one file, it is given to the accountant. The information is provided in a compatible forma with that of the software. It not only eases off the workload, but also leads to certain benefits that exceed the expectations of investors in the long run.
Utilising a depreciation rate also encourages businesses to record assets at their net book cost. Organisations initially take into account the secured assets in corresponding to their original prices, along with an analysis of the wear and tear over time. As a matter of fact, the value of the asset usually declines over time, and that’s the basic depreciation schedule one needs to know.
You can highly benefit from the depreciation schedule and make sure you can get the maximum claims. Get hold of expert property depreciation consultants for convenient services.
https://deppro.com.au/wp-content/uploads/2018/06/property-sector-warned-ATO-cackdown.jpg200300adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2019-01-24 02:14:452019-01-24 02:14:45How You Can Benefit from a Depreciation Schedule
Popular with the name of “construction economist”, quantity surveyors are the best partners who help you to extract every single penny of profit from your investment property. Along with the cost-efficient planning for your investment, another important function of QS is to facilitate maximum depreciation returns for your property. Tax depreciation quantity surveyors make your investment experience a profitable one.
Who are quantity surveyors?
In layman language, quantity surveyors are professionals who assist you in the construction and maintenance costing of your investment property. They refer you to all the other parties associated like architects, accountants, engineers etc. Facilitating the schedule for the depreciation assets for tax purposes and estimating costs and returns are some of the major functions performed by them.
Benefits of Hiring Tax Depreciation Surveyors
Though there are a number of benefits which can be availed by appointing tax depreciation surveyors for your assistance, the major ones are as follow:
· Depreciation Schedule:
A depreciation schedule is a complex report that has all your depreciable assets listed on which your returns for the same are calculated. Some investors might make these schedules themselves, but it is beneficial to appoint a professional quantity surveyor to form detailed and errorless schedules. Deppro quantity surveyors also provide such services.
A quantity surveyor aims at helping you to derive all the possible benefits from your property in the short term as well as long term. By giving the responsibility to a professional, you free yourself from the confusing burden. For a single year, the derived benefits might seem less, but when combined and totalled, you can save thousands of dollars over the years.
QS will prepare a depreciation report after inspecting every single depreciable property and by measuring and noting their values. This will carve out the exact construction cost of your building and of all the assets including equipment etc. Once all the information is collected and verified, a report is generated and split categorically under the building, plant, and equipment costs. This depreciation report can further be sent to the accountants for processing.
This report will help you gain returns on your property against the annual income. A small amount of money paid to the QS would help you derive benefits for decades as the life of the accuracy of a depreciation schedule is 40 years. So you can keep enjoying the long-term benefits over the years.
· Financial Benefits:
As the schedule can be used for up to 40 years, major deductions can be made in the taxable income over the years for profitable investments. Thus, as an investor, you should be well aware of the derivable profits of your property to make sure that you are being an effective one.
Thus, a quantity surveyor is considered to be the life of an investment party for no wrong reasons. Many people tend to realise its importance during the later years of investment, whereas, taking the assistance of one in the initial stages can help you save back those important dollars which you might need to recover from the initial establishment expenses and losses of your investment. Hence, it is important to make a wise choice.
https://deppro.com.au/wp-content/uploads/2018/11/accountant-accounting-bankbook-948887.jpg7221200adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2019-01-22 03:58:522019-01-22 03:58:52Why Quantity Surveyors Are the Life of the Party
It is pertinent that investors are aware of all of their entitlements. One of such is an entitlement to claim against a unit you own in the ambit of a complex. You can make this claim premised upon your share of the ownership.
It is usually reflected on the strata plan of the owner or upon the plans of subdivision. You can measure this entitlement to claim per lot and then a summation of all the lots.
Unit Entitlement: Explained
Let’s understand this by analysing an example. So let’s assume that unit entitlement of a person is (say) 60 and the aggregate of all the lost come down to 800. Then, by this, we can deduce that the person has a 7.5% claim over the commonly owned assets.
In a typical example, per unit claim gets smaller in case there are larger developments involved. However, this small percentage can contribute considerably to the claim. That’s how Deppro Perth works. The two basic and very common headings under depreciation are the structure of the building and the assets of the plant.
Importance of Common Area Deductions in the Depreciation Schedule
Undeniable claims can be derived through the construction value of common areas when looking at the structure of the building alone. Building tax depreciation can be filed for returns. For instance, if one particular unit of your property has a construction cost of approximately $100,000, but the additional detailing done to it like pools, floors, gyms etc. can add up to thousands or even millions of dollars.
The real impact of the common area deductions can be traced on the assets mainly associated with plants and equipment. Numerous assets are usually left unnoticed such as fire alarms, fans used for ventilation, carpets, lifts, etc. All these carry huge investment amounts which can be tax deductible.
Even an air conditioning plant that holds a value of millions of dollars will give out a single unit entitlement of a couple of thousand dollars to the investor because of the deduction that occurred across years. Thus, an asset like air conditioners which carry high investment amounts is not actually which would provide you with considerable deduction. But, numerous other assets and equipment do promise complete depreciable value return to the investor annually.
How does it work?
This happens in a very logical manner. The assets or equipment which are of less than $301 and aren’t a member of any particular set, can be written off completely. An example of this can be taken of the door stoppers. Collectively when seen, the stoppers can cost over $25,000 but when the share of an individual investor is calculated, it’ll hardly reach up to $100. Other than this, some other common assets which are commonly used by the investors and thus fall under the category include motors, assets used for barbecue, fire extinguishers, sprinklers, treadmills, swimming pools, and their accessories etc. All of them are deductible immediately and can give you remarkably reduced taxable property.
ATO property depreciation reduction can be experienced to a great extent by the common property. This is the major reason why units help you extract more deductions than houses generally. A fact to pay attention to is where the deduction is in the schedule. A large number of assets have a tendency of giving the deductions within the birth year of the ownership of the unit. This allows the investor to grab the advantage of improving his/her cash flow statements. Thus, a significant charge can be experienced in the upfront deductions of your common assets and their depreciation.
https://deppro.com.au/wp-content/uploads/2017/11/calculator-385506_1280.jpg7541280adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2019-01-09 00:29:372019-01-09 00:29:37How Common Property Assets Can Supercharge Your Upfront Deductions
If you are a property investor, tax time could be little confusing to you. If you are looking for the right advice to understand how to Claim Depreciation on Investment Property to reduce your tax liability reasonably, here are some tips to help you:
1. Figure Out What You Claim:
A variety of expense-related deductions are entitled to claim by investors including repairs, interest, fees, depreciation, and maintenance. A property depreciation report is a significant aspect to consider for the depreciation for tax purposes.
Typical depreciation schedules for rental property maintain all the deductions pertaining to capital works such as floors, roof, wall, windows, doors, etc inclusive of removable plant & equipment that belong to such a building. It also includes various appliances, blinds, carpets, etc.
2. Depreciation Rules:
The depreciation for tax purposes is available for the legal owners. In case of hire and purchase agreements, notional sales of goods are considered and the legal owner can claim the deduction. Similarly, in the case of joint ownership, no individual partner can claim the entire depreciation.
These deductions are limited to the extent to which you use your rental property for generating income. If you are using the 50% of the property, you cannot claim 100% depreciation for that particular year.
3. Age of the Property:
Most of the investors mistakenly believe that their property is too old to claim depreciation benefits. The age of a property does significantly impact on the capital work deductions but the depreciation claimed on the plant & equipment is regardless of the property’s age and can save a considerable tax amount.
4. Work From Home Also Allows a Depreciation Deduction:
Are you operating from home? If yes, you are also entitled to claim for the portion of property including the involved plant & equipment for the purpose of depreciation claims. A quantity surveyor can guide you in differentiating all the items which can be included in property depreciation report.
5. Depreciation for Tax Purposes Can Be Claimed for Partial Financial Years:
Even if you have purchased any rental property towards the end of the financial year, you can include it in the property depreciation report on a partial basis. If a large sum of money is involved in any such investment, it will lead to boost your cash flow significantly.
6. Crosscheck Your Tax Return:
If you are not acquiring the adequate knowledge on how to Claim Depreciation on Investment Property, you are prone to make errors pertaining to asset classification and calculation of depreciation. The plant & equipment depreciation rate is higher than capital works. So, if you maintain depreciation schedules for rental property at the same rate for both the classifications, you are tending to lose a significant depreciation claim.
7. Consider a Qualified Quantity Surveyor:
The selected professional specializes in helping with depreciation schedules for rental property is considered as the Qualified Quantity Surveyor under Tax Ruling 97/25. If you are not sure about how to Claim Depreciation on Investment Property, you can refer such professionals to seek an extended guidance. You can check with your accountant for any such referral to find an appropriate surveyor. Remember, not all the quantity surveyor possess specialization in building depreciation.
It is important to maximize your depreciation claims in order to ensure a higher return on investment on your rental property. You can also be assured a money-back guarantee on the services offered by the reputed quantity surveyor. But, most of these professionals also charge a premium service fee.
If you are an amateur investor, it is recommended to seek an experienced quantity surveyor to maintain your depreciation schedules for rental property more accurately and efficiently.
https://deppro.com.au/wp-content/uploads/2018/02/pexels-photo-313691.jpeg9601280adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2018-12-06 04:01:082018-12-06 04:05:59How to Claim Depreciation on Investment Property: Factors to Consider
One can consider depreciation of a property as a simple deduction on the actual worth owing to the ageing and wear and tear of the property that one owns. It can be termed as the deduction that results out of overtime assets. When it comes to investment, even the most experienced investor tends to overlook the benefits of a depreciation report. While there are accountants for a majority of tasks related to the calculation of taxes, there is hardly anyone who pays attention to depreciation schedule for investment property.
Property Tax Depreciation
The value of a building goes down as it gets older. This is because, in the majority of cases, such buildings show the signs of wear and tear. According to Australian Taxation laws, and the Australian Taxation Office (ATO) in particular, a property owner can claim depreciation if they generate income from their property.
Tips for Property Tax Depreciation
While your accountant can take care of all the aspects related to your business, they are likely to miss out on a depreciation schedule for investment property. After all, it is a payment which the administration owes to you. Though all accountants never overlook the matter, a majority of them prefer to have it handy while preparing your tax return. So, it is a good idea to reach out to a quantity surveyor for an assessment of your property.
Do Older Properties Offer a Good Depreciation Value?
Contrary to the notion that older properties have no depreciation value, the truth is that every property has some sort of depreciation value if it is used by its owner to generate some kind of income. Though the depreciation of a new property is much more compared to an older one, the latter can also carry a greater value than by virtue of updates and renovations.
Why Attach Importance to Tax Depreciation for Your Property?
On an average, about 80% of investors do not mind promoting the depreciation deductions. If you happen to be one of them, it is high time you made efforts to maximise it as far as possible. What’s more, the ATO has a provision wherein it allows taxpayers to go back to two previous tax returns and amend them to claim deductions. So, if you haven’t been claiming depreciation on your property, utilise it to your fullest advantage.
What to Remember for a Higher Yield on Investment Property?
An important thing to remember in connection with depreciation is that a majority of homeowners forget to take renovation into account while filing their tax returns. With every renovation, there is also the possibility of the existing assets being replaced by something new. And this makes for a cogent reason to qualify for depreciation. The ATO provides for claiming the remnant of value for depreciation in such cases.
Never miss the opportunity of having a quantity surveyor inspect your property in accordance with investment property depreciation rules. Make sure that they document each and everything as the ATO is likely to take their report into account. Once the renovation is done, ensure that the same surveyor takes a look at the property and notes down the details of it to determine the assets that have been removed or replaced.
As a standard rule, remember to only get in an experienced quantity surveyor when you plan to get your depreciation schedule done. While there are other low-cost DIY options that you can explore as well, you may eventually end up spending more. Furthermore, the remuneration of a quantity surveyor, even as it proves to be more than that of your liking, is 100% tax deductible. Thus, even if you pay them a higher fee, it wouldn’t hurt you as you would get it back.
https://deppro.com.au/wp-content/uploads/2018/12/agreement-business-businessmen-886465.jpg8001200adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2018-12-04 03:20:532018-12-04 03:20:53How to Maximise Depreciation for Investment Property
In order to minimize your tax liability, claiming the depreciation on a rental property is imperative. It also significantly improves your cash flow. It is important to calculate precisely on the amount of depreciation tax deduction on rental property. While a little depreciation will enhance your tax liability, any excessive claim can cover you under the preview of ‘Fraud’.
Here is a comprehensive beginner’s guide to rental Property depreciation:
Depreciation – an Overview:
Depreciation technically refers to the decrease in the value of an asset over a period of time. Any tangible asset has a value which declines substantially over its useful life. The owner of the assets can deduct the cost of these tangible assets as an expense to claim the tax deduction.
Depreciation is a non-cash transaction which helps in improving the cash flows by the way of reducing the tax liability. Any rental property generates a certain amount of income which is liable to tax. By claiming the depreciation tax deduction on rental property, this liability can be reduced.
For investment property depreciation, there are two broad asset classifications:
Plant & Equipment: Any item used in a building including dishwashers, light fittings, curtains, carpets etc. But the garden plants are not covered in this category.
Building: The cost involved in the construction of the building for concrete or brickwork.
ATO Tax Depreciation Schedule – An Overview:
A Depreciation report needs to be maintained in order to claim a depreciation tax deduction on rental property.Tax depreciation reports state the entire claimable amount under depreciation to be considered for tax purposes. ATO only allows for a backdate depreciation of up to 2 years.
Hence, it is recommended to start claiming depreciation at the earliest possible time. It is worth noting that this 2-year limit can be contented by a savvy accountant and on the discretion of an ATO commissioner.
To include the rental depreciation:
Rental money must be included under the income.
Any insurance payout on the rental property must also be included under the rental income
Any booking or letting fee should also be considered as rental income.
Any reimbursement received for deductible expenditure to be included under the rental income.
In the case of co-tenants, depreciation can be claimed only to the extent of legal interest in the property.
Things to Know About Depreciation Tax Deduction on Rental Property:
In order to claim a correct depreciation tax deduction, you must know the following details:
Date of the Beginning of Construction:
When the construction of the property begins, the depreciation rate percentages can be counted from the effect. If the property is constructed in different time frames, the depreciation can be claimed according to different times.
The percentage of depreciation approves the time for which depreciation can be claimed. Say, if you are claiming a depreciation of 5%, you can claim it for the subsequent 20 years. Similarly, if you claim depreciation for 4%, you can claim it for 25 years.
Date of the End of Construction:
The depreciation tax deduction on rental property can be claimed after considering the date of the end of depreciation. This is a very important date to be known and considered for the depreciation deduction.
Cost of Construction Involved:
The actual cost of construction exclusive of the cost of property purchased as well as the value of the property is considered as the cost of construction liable for a rental property tax deduction. It can also be estimated, in case the owner is not sure about such cost. Such estimation can be done on the basis of the type of construction say residential house or apartment or any commercial property as well as the party involved in such construction i.e. owner, builder or any developer.
With this beginners guide to rental property depreciation, you can suitably save a considerable amount on your tax liability.
https://deppro.com.au/wp-content/uploads/2018/01/stil-326695-2.jpg15001202adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2018-12-03 00:40:312018-12-03 00:40:31A Beginners Guide to Rental Property Depreciation: All you should know!
It is said that death and taxes are inevitable. One never knows when, where, or how death can strike. But you do know that taxes come back to haunt you at least once every year. One thing that you mustn’t do is evade taxes. But what if you could reduce the tax liability without breaking any rules. The Australian Tax Office (ATO) has detailed rules about tax deductions. While most big-ticket options for tax reduction are well documented, there are many useful rules which not everyone knows about.
Let us look at two such tax refund options which you might not have heard about – one on work-related expenses, and the other on the depreciation of your property.
1. Work-Related Tax Deductions:
Let us first look at the ways your work-related expenses could help you lower your tax. In case you have taken up a course of study which pertains to your current employment, all expenses on it beyond the first $250 can be claimed as deductions. In case you can show that you are doing your office work from home, then the expenses incurred for that can be claimed. Some common examples are stationery, printers, computers, electricity expenses, and even chairs and desks. For some specific jobs, footwear expenses which are specific to their job can also be claimed. If you have subscribed to any magazines or journals related to your line of work, even that can be claimed under tax deductions.
Some of the items on the list above must have surprised you, but we are not done yet. You can claim a total deduction of up to $300 without submitting any proofs, but beyond that, you need to submit evidence. So let us look at some other work-related expenses where you can show receipts and reduce your tax. What about the work clothes you wear? Well, you can claim up to $1 per washing and ironing, provided you can show receipts. If you are paying your mobile phone and internet connectivity bills and have receipts to show, you can add them on if you are using them exclusively for work. The maintenance expenses of the vehicle you use to travel to and from work can also be claimed. The maximum distance allowable is 5000 kms, which means an average travel of 25 kms per day is admissible if you go to the office around 200 days in a year.
2. Property Related Allowances:
When you use a reputable agency like Deppro, they will tell you the small and of course the big expenses you can claim. In terms of assets, the bricks and mortars used in your property can also help you reduce your tax liability. You must remember that the land on which your house is constructed is not considered to be a depreciable asset, so you can’t claim tax depreciation on its value.
The ATO has recently changed its rules regarding claiming of tax depreciation. You need to hire a trustworthy agency who can send a qualified quantity surveyor to your property. The surveyor can make a list of all the assets and accordingly create a property asset list, based on which you can file your tax depreciation returns.
https://deppro.com.au/wp-content/uploads/2017/12/write-2281591_1280.jpg8561280adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2018-11-27 05:08:322018-11-27 05:08:32Tax Deductions You Didn’t Know You Could Claim From the ATO