2014 Tax Returns – Business Expenses Claims

Business expense claims must be justified for this financial year

Expense receipts are an important part of your record keeping for taxation returns
Expense receipts are an important part of your record keeping for taxation returns

Remember to keep dated records of all your business expenses and offsets, including:

  • Timing of expenses – Expenses are generally deductible if incurred by 30 June 2014. This requires a presently existing liability.
  • Gifts – Donate to deductible charities before 30 June 2014
  • Bad debts – Review bad debts before 30 June 2014
  • Trading stock – Scrap unwanted stock by 30 June 2014

Home office expenses

  • Home office expenses may be deductible where you carry on business or employment activities at home
  • Portion of interest, rent and insurance are not deductible unless you are carrying on business from home and the area is separate and distinguished from private living areas
  • Power, heating and depreciation can be claimed at a flat rate established by the Tax Office even if the room is not exclusively set aside for a home office
  • If an office is provided by the employer, working from home as a convenient place to do part of the work will not be sufficient to claim home office expenses.

Car expenses

  • If claiming actual expenses, check the log book is current and that log book details are correct
  • Ensure year end odometer readings are taken
  • Ensure all relevant receipts have been kept.

Prepaid investments

  • The prepaid investment expenses rules apply to all taxpayers.
  • There is an exception for interest expenditure on:
    • Real estate investments;
    • Shares in listed companies; and
    • Units in widely held unit trust (300 beneficiaries).

Call our tax agents and advisors now at our George St Sydney office on (02) 9871 3429 to see how we may assist with your business or personal taxation planning.

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