How To Get The Maximised Tax Returns Geraldton When You Lodge Your Tax Return Online Or Offline

As a home-based business owner, do you know what deductions you are eligible to claim? How do you make sure you are getting the maximum tax returns Geraldton due to you?

There are many rewards you can yield when you run your business from home. Aside from the facts that you can experience positive shift in your work-life balance; and have improved motivation by being your own boss – the financial rewards are one of the most note-worthy things. This particularly includes your eligibility to claim certain tax deductions.

Whether you are looking to lodge your tax return online or offline, it pays to know what you can claim as deductions on your tax. Some of the general deductible expenses applicable to home-based businesses include:

1. Occupancy expenses
If you have expenses such as house insurance premiums, council rates, mortgage interest, and rental payments – you can include them in your tax returns Geraldton as tax deductions. These kinds of expenses do not necessarily need to be related to your home-based business – for as long as they are related to owning, renting or using a home.

Before you can claim occupancy expenses as tax deductions as you lodge your tax return online or offline, your home-based workspace need to pass the ‘interest deductibility test’ first. Passing this test means the place must be identified clearly as a business place. One example is that you must have a sign at the front of your house. Also, your home-based workplace must be unsuitable for domestic or private purposes, and must be used by your clients regularly.

2. Running expenses
When you use the facilities within your home for your business activities, it is expected for your home expenses to increase. These expenses normally include cleaning costs, phone bills, gas, and electricity. You don’t need to worry about these increased costs though, as you can get them deducted on your next tax returns Geraldton. You need to make sure that these are not general house expenses that you want to claim.

When you lodge your tax return online or offline, there are various calculating methods you could use. The first method is to find the percentage of the floor space that is for business use compared with the entire home. Use this percentage when you calculate the cost of utilities that have been used for your home business.

The second way of doing things is to compare the before-and-after costs upon setting up your business at home. Use the difference as the costs used for business. Make sure that you support this claim by providing the reasonable information and details.

These are only two of the tax deductible expenses you could use to get maximised refund and minimised tax. The other things you need to look into include motor vehicle expenses and documentation of all your receipts and tax invoices.

This is where a proactive accountant comes in most handy. A proactive accountant will not only do the number crunching, but will also provide you that much needed advise to find other deductible areas in your business.

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