Have you asked your tax accountant any questions that led to an interesting and thoughtful conversation? That doesn’t refer to asking how to develop your business and make it ready for sale? Or how can you untangle the cooperate messy structure? Here are some out-of-the-box questions that you might never think of or ignore thinking they aren’t relevant.
Can you claim a tax deduction for clothes?
You can claim some deduction on clothes but there’s quite a limited scope. Although you can say that you need clothes to go to work and hence have to bear extra expenses, it won’t make you eligible. That’s because you will be wearing those clothes even when not going to work. However, if you are buying a dedicated uniform for work, it can earn you some deduction.
Can you claim a tax deduction for groceries?
That’s a straight no. Here again, you need food to stay alive and go to work but you work for food and not eat for work. That’s where tax laws differentiate between private and personal matters.
Can you claim a tax for home rent or mortgage?
For an employee, claiming this type of cost is referred to as occupancy cost. You can do this if your employer doesn’t provide you with a space for work. While for a businessman the place should be set aside as a place of business and not eligible for personal use.
Can you claim a deduction for a car?
Getting to and from the workplace is considered a private affair. You can think of claiming a deduction if you are buying a car only for work.
Similarly, there are many other areas you can (or can’t) claim a deduction. A tax accountant in Wetherill Park can guide you through the best approach to minimize your liabilities.