Deductions for finance on a rental property
Interest can be claimed for the cost of funds borrowed to purchase a rental property and to meet maintenance costs or running expenses while the rental property is being let (or is available to be let) under a commercial arrangement to generate assessable income. In these circumstances the interest paid is deductible even if it…
Read MoreTax Deductions Specifically for SMSFs
One overarching fundamental that SMSF trustees should ideally keep in mind is the sole purpose test — that is, every decision made, and action taken is required to be seen as being undertaken for the sole purpose of providing retirement benefits for the fund’s members. If an SMSF trustee incurs an expense in the usual…
Read MoreChild Death Benefit Recipients and the Transfer Balance Cap
The death of a parent is hard on all those involved, however once the grieving has eased, a time comes to address financial matters. One of these issues can be what happens to any superannuation they have left. Making things harder is the fact that the new transfer balance cap (TBC) brought in as of…
Read MoreTravel Allowances and the Proper Use of the Exception to Substantiate Claims
A travel allowance is a payment made to employees to cover accommodation, food, drink or incidental expenses they incur when they travel away from their home overnight in the course of their duties. In most circumstances, when claiming other deductions, you will be expected to be able to substantiate the expense being claimed with documentary…
Read MoreSubstantiation for mobile, home phone and internet costs
The ATO has issued guidance on making claims for mobile phone use as well as home phone and internet expenses, and says that if you use any of these for work purposes you should be able to claim a deduction if there are records to support claims. But the ATO points out that use for…
Read MoreDeduction tip: Can you claim the cost of travelling to this office?
Tax time has arrived, but before you have us lodge your return here is another deduction tip — should your circumstances allow (or file this away for next income year.) The ATO recently issued what it calls a “tax determination” which more clearly spells out the circumstances of what may be an allowable claim (under…
Read MoreSuperstream – Is Your Business Ready?
SuperStream is a government reform aimed at improving the efficiency of the superannuation system. Under SuperStream, employers must make super contributions on behalf of their employees by submitting data and payments electronically in a consistent and simplified manner. If you have 20 or more employees (medium to large employer) SuperStream starts from 1 July 2014.…
Read MoreStreaming trust capital gains and franked distributions: An overview
The ATO has stated that a trust’s capital gains and franked distributions can, if not prevented by the trust deed, be streamed to beneficiaries for tax purposes by making these beneficiaries “specifically entitled” (more below) to the amounts. This allows beneficiaries to offset capital gains with their capital losses, apply applicable discounts and, subject to…
Read MoreATO waves a red flag on deductions for holiday rentals
Just when many Australians are considering getting away for a mid-winter break, the ATO is reminding taxpayers that it is paying close attention to rental properties located in popular holiday destinations around Australia. The ATO recently issued a statement saying that last year it identified a large number of mistakes with deductions for rental properties,…
Read MoreQ: Who is assessable on interest income?
A: THOSE WHO “BENEFIT” It is a fairly well-established and welcome act for an aunt or uncle or of course a parent to start a savings account for a new addition to the family. It is not so common however, to factor in the taxation obligations that may arise from this generosity. A young child…
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