3 Questions Your Accountant Might Ask When You’re Lodging a Tax Return

Tackling your tax return can be tricky, but don't worry – a registered tax agent can make it easier. We're here to help you, but first, we'll need certain details from you to maximise your return. Let’s get started.

Do you have all of your records for your return?

When it comes to tax returns, the importance of maintaining accurate and complete records cannot be overstated. Whether it's invoices, receipts, bank statements, logbooks, or other forms of records, every detail counts if you're planning to claim it.

A well-kept record should ideally include:

• The name or business name of the supplier
• The total amount of the expense or the cost of the asset
• A clear description of the goods or services purchased
• The date of purchase
• The date the document was issued

If you’re looking to claim a deduction for any work-related expenses, it's crucial to have a comprehensive record that not only shows your expenses but also demonstrates how these are directly connected to earning your income. Remember, if you're using an asset for both personal and professional purposes, you’re only eligible to claim the portion of the expense that is related to your work.

A diary or similar record-keeping tool comes in handy here, helping to distinctly outline both your private and work-related usage. This should also detail the method you used to work out the deduction amount you're claiming. And more importantly, don't forget to keep these records safe and accessible for at least five years from the date you file your tax return. These records provide necessary support for your claims and ensure your tax responsibilities are met.

Did you sell a property in the last financial year?

If you had a major property-related event, your upcoming tax return might need some extra attention. Selling a property can bring various tax implications, such as potential capital gains or losses, and even main residence exemptions, all of which need accurate reporting in your tax return.

Also, if you've used any part of your property to generate income – maybe by renting out a room or using a section as a home office for your business – it's important that you inform us. This way, we can ensure that the correct tax treatment is applied to these transactions. We may also be able to assist you with determining if the 6-year rule for Capital Gains Tax (CGT) might apply.

Are you reporting all your income sources?

It's crucial to ensure every bit of income is accurately reported on your tax return. This includes not just your primary employment income but also any additional earnings such as government payments, dividends, or income from partnerships, trusts, and units. Each of these plays a vital role in shaping your tax obligations and must be declared correctly.

And if you own rental properties, it's important to get the details right. Rental income can be a bit complicated, especially if you've made improvements to the property. Make sure to collect all your rent-related information – the more we have, the better we can help you sort out your taxes correctly.