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6 Over looked expenses you can claim this tax time

Tax time is creeping up again and with under a month until another tax year is over it isn’t too late to help reduce that tax bill. Here are 6 commonly overlooked expenses that are missed by small businesses at tax time and how you can get the most out of them.

#1 Instant Asset Write-Off

This one isn’t the most overlooked that is for sure but with big changes made recently it made the top of the list. In its original state the ATO’s instant asset write-off allowed business to claim not only the GST on the asset but also be able to claim all depreciation associated expenses straight away, not over the life of the asset.

The big changes recently made were an increase in the eligible maximum price of the asset and the size of the business that could claim. Originally for assets up to $30K it is now increased to $150k and businesses eligible to claim once capped at 50m are now 500m.

As long as you take delivery, install or first use the asset before June 30, you can claim it to reduce this financial year’s return.

#2 Business Insurance

Insurance is already a bit of a grudge purchase for a lot of people so not being able to claim it on your tax return is a double blow. However, in most cases Business Insurances are considered operating expenses and thus deductible. Think of things like your Professional Indemnity Insurance that covers your professional advice or Liability Insurance for some of the more physical risks of operating a business.

#3 Your Mortgage

If you operate your small business from your own home, you can even claim a portion of your mortgage. Yes, you read that right. Your home’s mortgage might be tax deductible. However, approach this one with caution. If you sell your home, you may have to pay capital gains tax on the business portion that you have declared in your tax return.

#4 Your Tax Expenses

Your accountant should always include these but make sure they are there! You can claim all the expenses that you have incurred relating to preparing your tax return and any tax advice you have got along the way.

#5 Bad Debts

If before tax time, your business is carrying any bad debts, it is a good time to have another look. If the odds of recovering them aren’t looking good you can write them off in your tax return and avoid paying any unnecessary tax on something you aren’t getting anyway.

#6 Subscriptions

Tax time is a great time to review any subscriptions your business may currently have. If you are in a good cash position just before tax time and plan to continue these subscriptions it can be a good idea to pay some in advance to help this financial year’s return.

Tax time for any small business owner can be tough. Plan ahead and do everything you can to help make sure it is as smooth as possible with no surprises. We are not tax experts so make sure you always get advice from a tax professional and get the best solution specifically for your situation.

Sponsored article from Professional Indemnity Insurance

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