Tax deductions misconceptions

Wrongly claiming tax deductions can result in heavy penalties from the tax office. Despite this, many Australian taxpayers continue to attempt claiming invalid tax deductions that are rejected by the tax office. While some are not quite so obvious, below are some common misconceptions about deductions that many taxpayers believe. Driver’s licence: While claiming deductions…

Employee reimbursements and GST

Business owners registered for GST may be able to claim GST credits for an employee-reimbursed expense. A reimbursement occurs when a business repays an employee for the price (or part of the price) of a purchase they have made. There are three conditions that an owner must meet in order to claim GST credits: the…

Small business CGT concession common errors

The ATO recently reported that small business owners were repeatedly making common mistakes when applying for capital gains tax (CGT) concessions eligibility tests. A taxpayer may qualify for the CGT concessions if they: – own a business with an annual aggregated turnover of less than $2 million; – are involved in a partnership that owns…

Last-minute tax tips for individuals

With just over a week until June 30, here are some tips that can help savvy individuals make the most out of their tax refund for the 2014-15 year. The following tips are by no means exhaustive and may not be relevant to every personal situation. Keep your receipts The most important thing every individual…

ATO cracks down on high work-related deductions

The ATO is closely scrutinising employees who make abnormally high work-related expense claims. The tax office is using advanced data and technology to identify and investigate claims that stand out from the usual. They are repeatedly targeting people who claim a tax deduction for using their computer, phone or other electronic devices to perform duties,…

CGT on property in deceased estates

If you are appointed as an executor in a will, your responsibilities commence following the death of the will-maker. It is important for executors to consider the capital gains tax implications of a deceased estate when it is time to administer the estate property for its beneficiaries. There is generally no CGT payable for the…

ATO cracks down on holiday homes

The ATO is targeting holiday-home owners who are over-claiming on tax deductions for periods when their property isn’t being leased. Some owners have been rejecting tenants so that their holiday home is available for them to use. They provide their accountants with authority to rent documents to make it appear that they are trying to…