To claim deductions in your tax return for expenses incurred for business purposes, you need to have accurate records to substantiate your claims. Your records need to show how you worked out the business-use proportion of relevant expenses. Have a closer look the following details about the records you must maintain for claiming deductions for common business expenses:
Motor vehicle expenses
| Information that must be included in your records to show about your motor vehicle expenses | Examples of types of records |
The records that you need to maintain rely on the way you calculate your claim. You’ll need to keep:
If you are a sole trader or partnership using the logbook method, you are required to keep additional records. Your logbook must have:
For each journey, you need to record the:
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Business travel expenses
Have a closer look at the records that you need to keep for business travel expenses:
| Information that must be included in your records to show your business travel expenses | Examples of types of records |
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Home-based business expenses
| Information that must be included in your records to show your home-based business expenses | Examples of types of records |
| Tax invoice or receipt for:
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Other business expenses
| Information that must be included in your records to show other business expenses | Examples of types of records |
Other business expenses you pay for in cash, using credit cards or debit cards, or online, which you will claim as a tax deduction, including:
Through your records, you need to show how you calculated the business-use proportion of eligible expenses. |
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If you are familiar with the record-keeping of expenses that you can claim as a tax deduction, it’s better to seek help from Melbourne accounting services. Accountants or bookkeepers can help you with proper record-keeping of expenses incurred for business use. This way, you can save money on tax return or by claiming expenses as tax deductions.
Conclusion
The blog shares information on different types of business expenses that incurred for business purposes. Every business owner must have accurate records of business expenses so they can claim potential business tax deductions. For more information on claiming business expenses, you can get in touch with Reliable Melbourne Accountant.