Getting better at doing my taxes Recent content on Getting better at doing my taxes Hugo -- en Tue, 08 May 2018 12:19:32 +0000 Do You Need a Tax Accountant for Your Personal Finances? Tue, 08 May 2018 12:19:32 +0000 <p>In years past, tax accountancy was viewed as a service necessary for businesses to make sure they are meeting their legal requirements. However, <a href="" target="_blank">tax accountants</a> are not exclusively beneficial to corporations and other organisations. In recent times, some individuals have started to recognise the benefits of hiring a tax accountant for their personal finances too. If you do not believe that you need a tax account for your own benefit, read on to learn the different ways that they can be advantageous to your life.</p> <p><strong>Tax accounts free up your time</strong></p> <p>Most people can concur that filing taxes is an arduous process. And considering that a majority of people leave this task to the last minute, it is not uncommon to find that you spend hours on end trying to ensure that you have finished the process before the deadline. If you value your personal time with family or loved ones, you are better off outsourcing this task to a professional. A tax accountant not only ensures that your taxes will be in order, but they will also file them for you on time. Resultantly, you no longer have to worry about deadlines or spending your free time labouring over this issue.</p> <p><strong>Tax accountants inform you of deductions you were unaware of</strong></p> <p>While filing taxes is a critical part of being an upstanding citizen, this does not mean that you cannot benefit from some deductions. However, since the average Australian may not be well informed on all the tax deductibles that they are entitled to, they end up not claiming them in their returns. A proficient tax accountant can enlighten you on this. Overall, there are specific expenses that can be declared as a deductible as long as they can be proven to be a cost of conducting business. Some of these deductions include home office expenses, dividends, self-education costs, business-related travel and so on. You may even find that hiring a tax accountant for your personal expenses can qualify as a deductible for the subsequent year!</p> <p><strong>Tax accountants can improve your bookkeeping</strong></p> <p>Another advantage of hiring a tax accountant is they can help improve your bookkeeping practices. These professionals rely on structured&nbsp;organisation to ensure that they accurately file taxes or their clients. Thus, you can glean some skills from your tax accountant that can help you keep immaculate records, which in turn can simplify the tax return process for you in the long term.</p> Four Things Independent Contractors Need to Know About Simplified Depreciation Thu, 25 Aug 2016 13:32:04 +0000 <p>If you are a freelancer or an independent contractor, the Australian Taxation Office considers you a small business for tax purposes. This means when you declare your income to the ATO, you can also write off the expenses you incur in order to earn that income. While most small expenses can be deducted the year they are incurred, the ATO applies a depreciation schedule to large purchases.</p> <p>Depreciation schedules can be confusing, but luckily, to make it easier the ATO offers simplified depreciation for small businesses. Here's what you need to know:</p> <p><strong>1. You can write off assets that cost less than $20,000 in the year of purchase. </strong></p> <p>Under the simplified depreciation schedule, any assets you purchase for less than <a href="" rel="nofollow"><u>$20,000</u></a> can be written off in the year of purchase. To illustrate, if you buy a $1,000 computer for your freelance writing business, a $3,000 commercial oven for your catering company or a similar purchase for less than $20,000, you can claim that amount as a business expense on your tax return with worrying about depreciation.</p> <p><strong>2. You must check the threshold for previous tax years. </strong></p> <p>However, it's important to note that the $20,000 threshold is relatively new. If you are filing taxes for a previous year, check the threshold for that year. For example, from January 1, 2014 to May 5, 2015, the threshold was only <a href="" rel="nofollow"><u>$1,000</u></a>. &nbsp;</p> <p><strong>3. You must pool and depreciate assets costing more than $20,000. </strong></p> <p>If you purchase a backhoe loader for your landscaping company for $50,000 or spend $30,000 on a metal shed for your auto service work, you cannot write off those purchases individually as they are beyond the current threshold. Instead you must pool them all together, and at the end of the year when you are filling out your tax return, you need to add the cost of those assets together. Then you may claim 15 percent of the total during that tax year. That following year you can claim 30 percent, and you can claim that percentage every year until you have written off the total amount.</p> <p><strong>4. You cannot write off the portion of your assets used for personal use. </strong></p> <p>Imagine you are a clown who drives to birthday parties and special events all over the place. You buy a new vehicle, but you only plan to use it half the time for your clown business and the other half of the time for personal use. The car costs $24,000, and as a result, you can claim half of it ($12,000) as a business expense.&nbsp;<span style="line-height:1.6">Unfortunately, however, you cannot write off the full $12,000 in the year of purchase. Because the total cost of the item is more than the $20,000 threshold, the ATO requires you to pool and depreciate this asset over time.</span></p> <p>Even simplified depreciation schedules can be hard to understand. If you want to learn more, contact an accountant at a business like&nbsp;<a href="" target="_blank">Capital Claims Tax Depreciation</a>.</p> Factors to Consider when Hiring a Quantity Surveyor Fri, 19 Aug 2016 09:17:49 +0000 <p>When it comes to construction or buying of property, most people are lost on the course of action to take when it comes to depreciation taxes. Ideally, your accountant can provide advice on fiscal matters, but when the said issue touches on a property, <a href="" target="_blank">quantity surveyors</a> are best placed to offer advice on the best way forward. However, one must be careful to avoid losses occasioned by poor estimations. As such, you should factor the following aspects before contracting a quantity surveyor:</p> <p><strong>Qualifications:</strong> Confirming that your quantity surveyor is duly qualified is an important aspect that is mostly assumed by many individuals due to the technical nature of the job. Ideally, most people will believe the quantity surveyor at face value without appraising the qualifications of the professional. It is prudent to ascertain if the quantity surveyor is registered with the relevant professional bodies to avoid running afoul of the law. In fact, many states demand that you contract an expert due to the sensitive nature of taxes and property. In any case, the due diligence is designed to ensure that you can seek reprieve if you feel that the work was not up to standard.</p> <p><strong>Schedule List:</strong> Demanding a schedule list from your quantity surveyor is critical since it contains all the inclusions in the property that are necessary for tax reprieves. Ideally, this requires that the expert visit the site to capture all items in the property. Notably, this will help the investor settle for the most comprehensive approach to tax depreciation. Typically, many people want a schedule that covers the entire life cycle of the property and the best way to ascertain this is through the repayment plan that contains information on all assets in the property. A schedule list enhances appropriate timing when it comes to repairs or replacement of worn-out assets, which ensure that the property owners maximize on depreciation tax.</p> <p><strong>Experience:</strong> Due to the dynamic nature of the law, one must contract a quantity surveyor who is well versed in property regulation to maximize on depreciation tax that one is eligible for from their assets. Demanding for referrals is a sure way of avoiding rookies in the industry that may end up costing the investor due to inadequate exposure. Alternatively, a property owner can conduct an online such for reputable quantity surveying companies since many have posted their portfolios on the virtual realm. The internet can be very resourceful in this regard.</p> Search Fri, 10 Nov 2000 10:04:38 -0500