Should you do your own tax return?
WHEN FACING COMPLEXITY IN DOING YOUR TAX RETURN, IT MAY BE BETTER TO TURN TO YOUR ACCOUNTANT.
DIY Tax return are becoming quite the thing. With on-line tools and now even the ease of using MyGov and the ATO’s tax App, more and more people are saving money and doing their tax returns themselves. If yours is simply a payment advice and a couple of deductions, this may be the way to go, however, if you’ve got any of the following complexities in doing your tax return, why not seek the assistance of your accountant. After all, tax preparation costs are also tax deductible.
WORKING FROM HOME EXPENSES
Due to physical distancing, more and more of us have been working from home. This incurs costs like electricity, internet access, computers and screens, desk and office expenses. Telephone and data are also significant components when working from home. While the tax office has provided some guidance and an easy way of calculating, you might be missing out on further deductions. If you’ve had to buy a new computer, or even rent some space from yourself, it’s best to talk to your accountant.
DIVIDENDS FROM SHARES
You might have some shares from a past employer, or be dipping into your own share trading as a hobby. If you’ve bought/sold or received dividends from shares, it’s highly recommended that you use an accountant to do your tax return. The complexities around share trading and the tax implications can be significant. Introduce capital gains tax into the equation, and your tax return ‘gets real’.
Tax deductions in owning a rental property can be significant. We’ve all heard of negative gearing. Not only are their tax implications, but it’s also good to know your true cash position and cash flows. Chasing deductions could leave you cash poor. While deductions are significant, it’s best to understand the differences between capital improvements and maintenance. It’s always best to get the advice from your accountant if there is going to be significant expenditure on your property. That way you’ll get your tax right and maybe understand the upfront deductibility vs. the ongoing depreciation claims.
SELLING YOUR HOME
If your main residence was at any time rented out in the past – especially up to the point you are selling, you might be subject to capital gains tax [CGT]. CGT can get complex quite quickly, and your accountant is fully versed on the latest changes and how to reduce the tax liability the best way. Before you make the decision to move or sell out of your principal place of residence, talk to your accountant. Even if you’re not subject to any CGT they might be able to provide you advice around cash flow or investing in property with some of the cash proceeds. There’s a wealth of information you can gain in these major milestones in life.
CAN WE HELP YOU WITH THOSE DECISIONS YOU ARE WRESTLING WITH?
Praescius’ Tax and Accounting Team are a professional team of qualified accountants who understand tax legislation, the latest changes and the importance of holistic planning. They can assist you with advice you need to maximise your tax return refund. If you would like more information, or assistance in your tax return, you can fill in your details here and we’ll get back to you as quick as we can.
– 14 October 2020 –
More from insight in action
This blog article is about what borrowers need to think about if they find themselves in financial trouble on their home loans.
With the tapering of Jobkeeper, it is inevitable that many businesses are now considering redundancies in their workforce.
There is an old saying in the accounting and finance industry: “If you can’t measure it, you can’t manage it” and it always rings true.