How to be tax smart

Portrait Of Man GardeningIt’s that time of year again! Don’t let your tax return get you down – there are lots of clever ways to save money on your tax bill.

Find an accountant

Accountants can have a better understanding of specific tax laws to make sure you get the best return possible. While you may have to pay for an accountant’s time, you can then claim the fees on next year’s tax bill.

Keep a car log book

If you use your car for work, you may be able to claim thousands in deductions. So keep receipts for expenses like petrol and servicing, and keep a log book for just 12 weeks a year.

Have you worked at home this year?

Even if you’re not self-employed, you may be able to claim a proportion of your home expenses if you’re regularly taking extra work home. Claimable expenses may include internet and utilities, and depreciation of any furniture used.

Investment property tax claims

Great news – there’s a lot you can claim when it comes to your investment property – but make sure you check with your accountant first. Some expenses may include:

• Property management costs
• Council rates
• Water charges
• Mortgage interest
• Repairs and maintenance
• Pest control
• Cleaning fees
• Legal fees
• Depreciation (and related costs, e.g. getting a depreciation schedule)
• Rental property costs (e.g. running advertisements)
• Borrowing expenses (for the first five years)
• Strata fees
• Gardening costs
• Insurance

This is general information only. It does not consider your personal situation. Please consult your accountant for professional advice on your personal situation or speak to your taxation adviser to see if any of the above tips would be suitable for you.

Call me if you feel you need more support in this area and would like to be connected with an accountant or tax adviser.