Everybody wants to reduce their tax burden. Investors leave no stone unturned to claim all the deductions they can. If you want to do this, you can speak to Coorparoo tax agents and hire them to maximize your savings. It is natural that when you spend money on something related to earning income, you want to claim it. Things that may appear to be trivial can add up to vast savings at the end of every financial year. If you bought something for work and used it during your time off the clock, you may still claim that money as a work-related tax deduction.
Given below are some easy tips that will ensure that you do not end up paying more tax than you need to:
1. Retain all your receipts
If you have been spending on business or work expenditures, you must ensure that you retain your receipts. Sometimes we lose receipts of the expenses paid by cash and it emerges as one of the most common lost tax deductions. You should capture all images of your receipts so that you do not miss out on any vital tax deduction. And, if you pay for income-related expenditures in advance, you can significantly bring down your taxable income.
2. Seek a property report
If you have an investment or business property, you must obtain a quantity surveyor’s report. This will allow you to claim depreciation on the building, renovations, and fixtures like hot water system and light fitting. Coorparoo bookkeeping experts can help you prepare your property report.
3. Leverage your home office
If you are working from home, you must maintain a diary. You will be able to claim 45 cents for every hour you work from home. The amount may appear trivial but it will soon add up. You can get in touch with Coorparoo business improvement experts to reduce your tax burden.
4. Mortgage offset account
If you have a home loan, a mortgage offset account will allow you to offset your non-deductible interest on the home loan. Taxpayers will be able to create a savings account with their lender. You can minimise your tax burden with a mortgage offset account.
5. Car logbook
When you use your car or any other vehicle for work, you must maintain a logbook. A logbook will ensure you have the proper records to take full advantage motor vehicle tax deductions.
6. Pay less tax with donations
When you make a donation of over two dollars to any registered charity, it can be considered tax-deductible. After donating, make sure you get a receipt and file that away for tax season. During tax time, include add your charitable receipts and enter that into the section of charity donation in your tax return.
7. Investigate the Medicare levy surcharge
The Medical Levy Surcharge, or MLS, has emerged as a common and yet expensive charge. The MLS is a levy above from the 2% regular levy that you have to pay when you earn over $90,000. MLS has emerged very costly as it is yet another 1% to 1.5% apart from the regular 2% Medicare levy. Talk to your account about how best to approach this levy.
8. Hire a reliable accountant
And, finally, you must employ a trustworthy accountant. A reliable accountant will make sure that you are claiming everything that you are entitled to.
The above eight tips will help you reduce your tax liabilities. You can seek all tax-related advice from Xero Advisers in Coorparoo at cost-effective prices.