deductions

Business costs, and the deductibility of interest expenses

If a business racks up an interest bill from borrowing funds to pay for the expenses of running the business, or to acquire other income-producing assets or investments, this expense is generally allowed as a tax deduction for the relevant year. For business taxpayers under the accruals accounting method, a claim can be made for

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Substantiation for work expense claims

Claims for work-related expenses, car expenses, and travelling expenses incurred by an individual must be substantiated if the claims are to be allowed (Division 900 of ITAA97). As well as the requirement to incur deductible expenditure, the “substantiation” rules impose a strict evidentiary requirement that must be satisfied if claims are to be allowed. Substantiation

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SMSF trustees have some specific deductions available

The ATO has issued guidance to allow for certain expenses to be specifically deductible to superannuation funds, including of course SMSFs. SMSF trustees have some specific deductions available Taxation ruling TR 93/17 says “the following types of expenses typically incurred by a superannuation fund are ordinarily deductible”. They are: actuarial costs (although see note below)

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Claims for electronic devices, phones

That technology has changed many aspects of our daily lives is a widely accepted fact of life, and no doubt more is just around the corner. Claims for electronic devices, phones The proliferation of electronic devices of all kinds has also pervaded our work and home environments to such an extent that the line dividing

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The ATO’s occupation-specific tax deduction guides

To save practitioners time explaining to clients what they can or can’t include as deductions on their tax returns, the ATO has developed a suite of occupation-specific guides. It says these have been designed to help your clients understand what they can think about including, or what is completely off the table, as work-related expenses.

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