how to better claim common tax deductions
This tax season is going great so far. The ATO are seemingly quiet and are processing some tax returns as quickly as 5 days.
Some areas to prepare your deductions before your tax return appointment are:
Doing a diary of working from home hours and knowing the total hours worked for the financial year;
Keeping a diary of work related car travel that confirms the financial year’s km travelled for work. This dairy should include: all trips – date travelled, purpose of the work related travel description and kilometres travelled and year total.
If travelling over 5000km, prepare a logbook to establish the car’s work related percentage of travel and all car running receipts and costs of the car.
Further information on how to do a logbook and claiming car costs Claiming Car expenses | Tax Accounting Adelaide
In general, provide how much deductions were for and keep receipts in case ATO query them.
Dates and amounts for major items purchased such as home office expenses, tool and computers over $300.
Determining amounts for phone and internet for working from home. Identifying the private and work related percentage usage by appropriate method such as phone bill showing work related calls and percentage or internet on a time working from home basis.
Be clear on knowing what your deduction is, summarising into the various ATO labels such as uniform, study and other work related costs is important too. In addition, how much you spent from your receipts.
If you have sold crypto or shares, provide:
how many units of items were sold and proceeds from sale, with dates;
the corresponding units of item purchased and cost of acquisition, with dates.
Of course keep your receipts for 5 years after the notice of assessment you stopped claiming them.
Romeo explains further in the video below.