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Quick Tax Tips

With the end of financial year fast approaching, here are some quick tips to help you save time and get more cash into your bank account.

1. Working from home – If you work from home, make sure you keep a diary of your internet usage and the hours you spend working.

2. Donations to a charity – Any donation over $2 is tax-deductible. Make sure you keep any receipts and have them made out to the highest income earner

3. Organise insurance – Income protection is a great way to be insured if you injure yourself away from work, and it can also be used as a tax deduction. Private Health Insurance will also help you save on tax in the 2014 year, if you are approaching 30 or the Medicare levy surcharge limits and join before 30 June 2013.

4. Deductions and income – The best way to claim the maximum in this area is to make sure deductions are claimed by the highest earner and claim any income by the lowest earner. If you have a bank account that is earning a substantial amount of interest, you could consider putting these earnings in the lowest income earners name.

5. Logbooks – If you keep a logbook to record the travel in your car, make sure it is less than 5 years old. Logbooks need to be kept up-to-date.

6.Claim everything you are entitled to – Do you know what you can and can’t claim? Did you know you can claim sunscreen if you work out on the road? So if you have some lip balm, foundation or moisturiser that has SPF rating, you may be able to claim it.

7. Use a eftpos or credit card for any tax-deductible expenses – Individuals can now use bank statements as a proof of claim. If you are not the best at keeping records of your purchases, be sure to use a eftpos or credit card and just keep records of all your bank statements.

8. Wealth creation strategies – Have you considered borrowing to buy a property? Invest in shares? These can help reduce tax and build wealth.

9.Rental Property – Do you have a rental property and a mortgage on your home? If you pay interest only on the rental property, that is a way to maximise your deduction. You can also claim depreciation and the building and fixtures if the property is less than 40 years old.

10.Capital Gains – If you sold shares or property and made a capital gain this financial year, you can consider selling some poor-performing shares prior to June 30, the capital loss can help offset some or all of the capital gain.

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written by:

McKinley Plowman