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ITP .

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ITP . answered this question

Are there any tax-code changes this year that small business owners should be aware of?

Not quite sure what codes you may be referring to specifically however there are no changes to accounting codes. One issue that many businesses have when lodging returns is getting their business industry code correct. The ATO have a limited number of business industry codes which relate to the type of business you run. For instance if you are running a Physiotherapy service you would use code 85330. If you find that your business type is not listed then you need to find the code that is closest to what your business does. The reason for this is that the ATO has audit checks on these industry codes and if your figures look totally different to other businesses using that code then you are more likely to be audited by the ATO.

ITP . answered this question

Can I claim a home office as a legitimate business expense?

Yes.A portion of the home which is used for income producing activities and does have the character of being a place of business can be claimed. This would include where part of a home is set up as a sole base of operations and/or where clients can be attended to on site. The claims would be apportioned in most cases on the area of the home used and would include a portion of rent, mortgage interest, insurance, council and water rates. Claiming these expenses would also mean that for home owners there may be a capital gains tax consequence when the house is later sold. You may also be able to claim running costs on the home such as a portion of electricity for heating/cooling and lighting, cleaning costs and depreciation of furniture. Claiming running costs do not make the home subject to CGT when sold.

ITP . answered this question

Is it ever a good idea for business owners to do their own taxes?

Generally I would say no. There are changes consistently from year to year and if you are not up to speed you could lose out big time. If you see a professional their fees are usually tax deductible anyway.

ITP . answered this question

What are the biggest tax mistakes small business owners make?

Coming up to the end of the financial year some businesses may be looking at reducing their profits. Tax deductions that can be prepaid in order to get the deduction now would include rent, advertising, business trips, insurance or interest on business loans. Small businesses with less than $2m of turnover are also eligible to write off assets purchased this year which cost under $20,000 each so it may be worthwhile getting some of those assets you need for your business now. If you have stock then do your stocktake and make sure that anything that is obsolete or damaged is either written down in value or written off.

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ITP . answered this question

Are there any tax-code changes this year that small business owners should be aware of?

Not quite sure what codes you may be referring to specifically however there are no changes to accounting codes. One issue that many businesses have when lodging returns is getting their business industry code correct. The ATO have a limited number of business industry codes which relate to the type of business you run. For instance if you are running a Physiotherapy service you would use code 85330. If you find that your business type is not listed then you need to find the code that is closest to what your business does. The reason for this is that the ATO has audit checks on these industry codes and if your figures look totally different to other businesses using that code then you are more likely to be audited by the ATO.

ITP . answered this question

Can I claim a home office as a legitimate business expense?

Yes.A portion of the home which is used for income producing activities and does have the character of being a place of business can be claimed. This would include where part of a home is set up as a sole base of operations and/or where clients can be attended to on site. The claims would be apportioned in most cases on the area of the home used and would include a portion of rent, mortgage interest, insurance, council and water rates. Claiming these expenses would also mean that for home owners there may be a capital gains tax consequence when the house is later sold. You may also be able to claim running costs on the home such as a portion of electricity for heating/cooling and lighting, cleaning costs and depreciation of furniture. Claiming running costs do not make the home subject to CGT when sold.

ITP . answered this question

Is it ever a good idea for business owners to do their own taxes?

Generally I would say no. There are changes consistently from year to year and if you are not up to speed you could lose out big time. If you see a professional their fees are usually tax deductible anyway.

ITP . answered this question

What are the biggest tax mistakes small business owners make?

Coming up to the end of the financial year some businesses may be looking at reducing their profits. Tax deductions that can be prepaid in order to get the deduction now would include rent, advertising, business trips, insurance or interest on business loans. Small businesses with less than $2m of turnover are also eligible to write off assets purchased this year which cost under $20,000 each so it may be worthwhile getting some of those assets you need for your business now. If you have stock then do your stocktake and make sure that anything that is obsolete or damaged is either written down in value or written off.