Are you looking to claim possible tax deductions for your business? If yes, then it is important to have a complete understanding of what tax deductions you can claim and what you can’t. Many of you may not have an understanding of tax deductions. That’s why you should seek help tax accountant in Melbourne. You can also find someone near your area. The blog will cover what deductions a tax accountant can help you claim. Let’s get started:
What Tax Deductions You Can Claim?
You can claim deductions for the expenses incurred for work or income-generating activity. If the expenses were for both personal and business use, then you can determine the portion of expenses used for business purposes or income-generating activity. Here are a few tax deductions that you can claim with the help of a tax agent in Melbourne:
• Home Office Expenses
Many of you may be working from home, if so, then you can claim tax deductions for home office expenses. These include:
◦ internet and phone expenses
◦ stationery and computer consumables
◦ home office equipment
• Vehicle and Travel Expenses
Generally, you are not allowed to claim expenses for getting to and from your office, but there are some work-related travel expenses you may be able to claim. These may include:
◦ where your work needs you to attend various locations
◦ car expenses where you need your car to do work duties
◦ accommodation expenses when you need to travel for work.
• Laundry, Clothing, and Dry Cleaning
If you purchased occupation-specific clothing, you may be able to claim these expenses as well as work-related expenses and work-related cleaning costs. However, to claim these deductions, you must have written evidence of these expenses, such as receipts. You can also search for an ‘accountant near me’ to find someone near you who can better manage these types of written evidence for you to claim possible tax deductions.
• Education
You are allowed to claim a tax deduction if your studies were work-related and you took admission in an eligible course.
• Industry-Related Deductions
You may be able to claim tax deductions for work-related expenses that are related to your industry and occupation.
• Other Work-Related Expenses
Based on your job and personal circumstances, you may be eligible to claim additional work-related expenses as tax deductions. The expenses to consider include:
◦ Books, magazines, and digital information subscriptions
◦ Safety goggles and protective sunglasses.
◦ Overtime meals
◦ Union payments, subscriptions to groups, and bargaining agents’ costs
• Gifts and Donations
If you provided a gift or made a donation to an entity (such as your favourite charity), you may be eligible for a tax deduction. However, there are some rules that may apply. Generally, you can claim any donation over $2 made to a ‘deductible gift recipient’. The guidelines for giving gifts vary based on the nature.
• Investment Income
You may be able to claim tax deductions for an investment income if you’ve received:
◦ Interest payments on your savings
◦ Dividends from your investments in shares
◦ Rental payments from an investment property
◦ Another type of investment income
If you receive any of these, you might be able to claim expenses related to this income. You may also be able to claim the payment you made for investment advice. Moreover, if you don’t know how to claim these tax deductions, it is better to seek help from an experienced tax accountant. You can conduct an online search to find the best accountant or you can also reach an accounting firm for your business so you can better focus on your business growth.
Whether you are an individual entity or a business, seeking help from a professional tax accountant can save you a lot of money. They can help you understand the tax provisions and income tax rules.
Conclusion
Now that you have an idea of what possible tax deductions you can claim. However, if you are unaware of the tax deduction lodgment process, you can get help from experienced and professional Reliable Melbourne Accountants.
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