6 overlooked tax deductions to include in your report
Tax time is just around the corner. Although you have an option to contact your trusted accountant to deal with your tax returns or do it yourself, knowing which items you can claim deductions for is critical in the process.
Not everyone knows which items are deductible and often times, some of which are overlooked. Don’t become one among those people and be responsible and aware of your deductibles. It’s either you see the tax season as a nightmare or a bonanza, it better be the latter.
Let’s get you started with your tax returns. Here are the top six overlooked tax deductions you’re entitled to that you should know.
1: Cost of managing tax affairs
You’ve been settling your taxes annually and perhaps you’ve sought assistance from online tax return services or with a tax agent.
If you paid for professional assistance to accomplish and lodge last year’s tax return, you’re allowed to claim the deduction for the expense this year. Input the details into the respective section: Cost of Managing Tax Affairs. Travel costs to and from your agent as well as tax advice fees can also be deducted. Basically, the fees you put into tax return are tax deductible.
2: Property expenses
For those with rental property, business property and homeowners alike, can claim a deduction for mortgages. However, there are more deductions you can claim that are beyond mortgages — your assets.
If you’ve paid for any among these expenses, you can claim deductions:
- Maintenance and repairs,
- Bookkeeping/secretarial fees
- End of lease cleaning costs
- Gardening and lawn mowing fees
- Pest control
- Expenses on installation of qualified residential alternative energy equipment (i.e. wind turbines, solar hot water heaters, geothermal heat pumps, etc.)
- Home or office improvement
There are many other assets you may find depreciation for and you can consult a quantity surveyor or qualified experts for acquisition.
3: Home office expenses
And if you happen to be a work-from-home professional, you may be able to enlist the use of your personal computer as tax deduction.
If you’re self-employed or a home-based employee, you can enlist your home office space an “occupancy cost” for it to be deductible. You may include expenses on software, furniture, equipment and certain percentage of your mortgage/rent and other bills and utilities applicable.
4: Charitable contributions
Though these are gifts and services you wholeheartedly provided this year, your philanthropic deeds can be of help to you when it comes to tax deductions.
Let’s say you offered to hand your time of driving for the charity organization, you may deduct 14 cents per mile as well as the parking and toll fees. Do keep your receipts and if you’re able to contribute at least a total of $250, request an acknowledgement from the charity documenting your support. This shall make for the tax returns.
5: Membership and subscription fees
Subscriptions can be quite hefty. Worry not, if you’re a part of a professional association, work-related union or have acquired a membership fee, you can claim a deduction for their respective amounts.
6: Internet and mobile phone expenses
Your work phone, the one you use for making and receiving business and work-related messages and calls, also counts for claimable deductions. Likewise, if you use your home internet service for work-related matters, you may also claim a certain percentage of the expense.
Now, don’t forget to review and include these deductions in your next tax return report.
What other overlooked deductions you think should have been in this list? Share it with us and for others to know, leave a comment below!
About Chie Suarez
Chie is a daytime writer for Depreciator – Tax Depreciation Schedule, a company dedicated completely to Tax Depreciation Schedules that aids the Australian property market.