Throughout the tax return lodgement process, a registered tax agent can be of invaluable help. However, we may have to ask you specific questions to assist you with getting the best return possible. Here’s how you can prepare beforehand:
Record-Keeping
Do you have all of your records for your return? You need to keep accurate and complete records of anything you may want to claim on your tax return. This may include invoices, receipts, bank statements, logbooks, or other records.
An acceptable record shows all of the following:
- The name or business name of the supplier
- The amount of the expense or cost of the asset
- The nature of the goods or services you buy
- The date you bought the goods or services
- The date the document was produced.
If you claim a deduction for a work-related expense, you must have records of those expenses that show:
- You spent the money
- That the expense directly relates to earning your income.
To show how the expense relates to earning your income, you need a diary or similar record that shows:
- Your private and work-related use.
- How you calculate the amount you claim as a deduction.
- For an asset that you use for personal and work use, you may only claim the work-related part of the expense as a deduction.
Your records must be kept for 5 years from the date that you lodge your tax return.
Property
Did you sell a property in the last financial year? If you had a major property-related event, there may be additional items to consider on your tax return. For example, when properties are sold, there may be capital gain, losses, or main residence exemptions to be reported on your return. If you used any part of the home or property to produce income while they owned it (such as renting out a room or running a business from home), we need to be advised so that we can apply the correct tax treatment to it. We may also be able to assist you with determining if the 6-year rule for CGT might apply.
Additional Income
In a world of multiple income streams, it’s important to make sure that all income sources are reported on your tax return. If you have additional employment, government payments, dividends, or partnership, trusts and units income, these need to be declared on your tax return. You also need to make sure that you have reported all rental income from any properties you own correctly. Rental properties can be tricky, particularly when it comes to claiming deductions for improvements, so bring in as much information as you have available so that we can assist you with this particular item.
Confused on how you can prepare before lodging your tax return? Ask our team at Lee & Lee Accountants on how we can help you make this process and your life easier.