As the end of financial year 2022-2023 has come to close, it’s time to begin preparing for tax return 2023. This year ATO will be focusing on four major key areas: record-keeping, work related expenses, rental property income and deductions and capital gains from crypto assets, property and shares.
Its important to know what you can claim, so when the time comes to do tax return you are well prepared for tax time. Preparation for tax it important to rethink claims and ensure you follow the three golden rules:
1. You must have spent the money yourself and weren’t reimbursed
2. If the expense is for mix of income producing and private use, only portion can be claim that relates to producing income
3. You must have a record to prove it
Record – Keeping
Keeping record is very important throughout the year this will guarantee a smoother tax return and ensure you claim the deductions that are entitled to you. For some who deliberately try to increase their refund ATO will be taking a firm action to deal with these taxpayers. This year will be focusing the importance of maintaining accurate records for all claimed deductions. Generally, records should be kept for 5 years form the date of lodging the tax return.
Work related expenses
This year in particular ATO will be focusing on individual claiming work-related deductions, it’s important that you don’t just copy paste from last or previous years deductions. Also make sure that you are not claiming reimbursement from the employer to claim as deductions at the tax time. Also, ATO has recently changed working from home tax deductions, to calculate your working from home expenses are the revised fixed rate method or the actual cost method.
Rental income and deductions
For investors with rental properties ATO will be focusing and closely examining tax returns this year. It’s important to make sure that all the income that have been received from rental, including short-term rental, insurance payouts and rental bond money to be retained. However, any additional borrowing for personal purposes such as home renovations or vacations, cannot be claimed as interest deductions.
Capital gains from crypto assets, property and shares
In last couple of years crypto currency has been very popular type of asset and it expect to be more capital gains or capital losses reported in tax returns this year and in the future. Making sure any gains or losses to be accurately reported in filing the tax return for 2023-2023 financial year, by following the guidelines you can affectively navigate the tax implication associated with cryptocurrency transactions. If further information needed Matovic Business Accountants are here to assist you or further information from link below:
ATO focus areas for tax time 2023 | INTHEBLACK (cpaaustralia.com.au)
Feel free to contact Lana and her team at Matovic Business Accountants if you would like to discuss your business’ accounting and bookkeeping needs.
Email us at info@matovicaccounting.com.au or call (07) 3557 5721.
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