Tax Deductible Expenses

WHAT IS TAX DEDUCTIBLE EXPENSES

Tax deductible business expenses, in general, are the day-to-day expenses that are incurred for running your business and aids in earning income for your business. An awareness, in terms of knowing, managing and maximizing your ‘current’ and capitalized’ expenses will help you to have a control on business expenses and fuel your business profit. Such expenses cover general and administrative, home office, automobile, entertainment and travel, depreciation, employee benefits and health benefits.

If you are running an AU Business, a clear scene of what all incurred business cost are to be taken into consideration for claiming under tax deductions. There needs to be a record for these work-related expenses in the form of receipts, bank statements or diary entries.

A listing for deductible expenses that are inclusive in AU business, are:

  • Travel and vehicle
  • Home office
  • Self-education
  • Tools and equipment
  • Overtime meals
  • Clothing, laundry and dry-cleaning
  • Phones (mobile, home) and internet
  • Gifts, donations and personal contributions
  • Management of tax affairs
  • Investments, interests and dividends

List of Expenses Which Can't be Claimed As Business Expenses

Such deductions encompasses expenditures such as:

  • Travel expenses that include property inspection and attending rental seminars.
  • The end costs incurred during acquisition and disposal of property.
  • Indirect expenses that are borne by the tenants of your rented home such as electricity and water bills and expenses for having rented your place as a holiday home for specific period in a year.

HOME OFFICE EXPENSES
  • It is the prime hub of your business
  • Is the main center for conducting meetings and daily interactions with clients and customers
  • Is secluded from the house or place of residence that is positioned as an autonomous body on the property that you hold.
SHARED TELEPHONE

Frequently claimed item for claiming tax return.Certain parameters set for calculation:

  • Per kilometer cost method
  • Car logbook (car expense tracking) method

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