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  • #979113
    blueute
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    Hi, i just to clarify if this is correct on personal tax return

    item 15 – net income or loss from business

    motor vehicle expenses – i have used the log book method
    repairs and maintance – have completed that

    the following is i am not sure i am correct

    other expenses

    fuel
    insurance
    parking fees
    home office expenses

    and those four expenses allowed under “other expenses”

    #1112017
    MyGreatIdea
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    Make sure if you are claiming home office expenses that you are aware of any capital gains tax that may become relevant should you sell your home.

    It really is worth seeing an accountant for these things. It’s such a small investment to make sure you are doing things properly, let alone getting all the deductions to which you are entitled. At the very least read through this page on the ATO website.

    Wendy :)

    #1112018
    TehCamel
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    over the 9 months I’ve been operating as a sole trader, I withheld approximately a big chunk of my revenue in a high yield interest account, to use for tax purposes once July rolled around.

    Based on my estimates, I would have needed about $10,000. (Not GST registered at that point)

    However, off I went to my accountant (Hi Xavier!!!)
    We went through all my records. Then he said “ok. You work from home, what size is the office you work in, is it dedicated, what percentage of the total property?” and asked me about a million other questions relating to things I’d never even thought about.
    Fast forward a few days, and all of a sudden my taxable income is drastically (but legally and correctly) reduced. I’m not even paying 10% of that withheld figure now.

    My point here is: an accountant is worth what you pay them. They know the ins and outs of the tax system better than you do, can identify things you may never have thought of, and know when you tell you “no, you can’t claim that, don’t be an idiot”

    I paid about $500 for the privilege – he’s legitimately saved me 10x that.

    #1112019
    Anonymous
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    Yay! Love your work, Xavier :)

    And thanks for sharing your story with us TehCamel – I’m sure it will inspire many people to follow your example and give their accountant a call.

    Cheers,
    Jayne

    #1112020
    AGMBris
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    Hi Guys

    I tend to agree, it is worth paying the experts for their expertise.

    I worked in Chartered firms for 10 years and I know there is a feeling of wasted money or a negativity around spending money on an accountant who will basically give you the bad news of how much tax you have to pay right? lol

    But it is worth it, we always found that the money spent to an accountant (and I do myself now that I am on the other side as a business owner btw), is invaluable because they have up to date reference to an ever changing tax system, they will do it in such a way that you have peace of mind and most importantly, you can concentrate on running your business and do what you a re great at! Let them do the same.

    Especially the home expense thing, it is a minefield and you need to know what you are doing. Measurement of the parts of the house you are using, consideration of any personal use elements, capital gains effects if relevant when you sell.

    Good luck, but I agree with others and think the investment in an accountant is well worth it.

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