Filing your income tax return can be a complex process, especially if you’re a business owner, it’s important to make sure you’re not missing out on any deductions. At T.H. White & Co, we understand the importance of maximizing your deductions and getting the most out of your business income tax return. Here are some tips for filing your business income tax return:
1. Keep Accurate Records
One of the most important things you can do to ensure you don’t miss out on any deductions is to keep accurate records of your income and expenses throughout the year. This can include receipts, invoices, and bank statements. By keeping track of your expenses, you can claim deductions for business-related expenses, depreciation of assets, and travel expenses.
2. Understand Your Deductions
It’s important to understand which deductions you’re eligible for as a business owner. Some common deductions for businesses include:
- Depreciation of assets
- Home office expenses
- Vehicle expenses
- Business-related travel expenses
- Business insurance premiums
By understanding which deductions, you can claim, you can reduce your taxable income and potentially increase your refund.
3. Take Advantage of the Instant Asset Write-Off
In Australia, there is an instant asset write-off threshold for small businesses. This allows businesses to immediately deduct the cost of eligible assets, rather than depreciating them over time. By taking advantage of this deduction, you can reduce your taxable income and increase your refund.
Here are some common eligible assets that businesses can take advantage of:
- Office furniture and equipment, such as chairs, desks, and computers
- Manufacturing and industrial equipment, such as machinery, tools, and vehicles
- Farming equipment, such as tractors, harvesters, and irrigation systems
- Restaurant and hospitality equipment, such as ovens, refrigerators, and tables
- Construction and building equipment, such as scaffolding, cranes, and bulldozers
- Medical and healthcare equipment, such as dental chairs, X-ray machines, and hospital beds
- Retail equipment, such as cash registers, display cases, and shelving units
- Gym and fitness equipment, such as treadmills, weights, and yoga mats
- Renewable energy systems, such as solar panels and wind turbines
- Telecommunications equipment, such as phone systems and network servers.
4. File Your Return on Time
Make sure you file your business income tax return on time. The deadline for lodging your tax return is October 31st. Failing to file on time can result in penalties and interest charges, which reduce your refund.
5. Seek Professional Advice
Want to know more? Speak to our expert income tax accountants at T.H. White & Co. Email or call us on 03 9525 3811 and we’d be happy to answer your business tax return questions and arrange a consultation. Providing businesses throughout St Kilda and Melbourne with expert advice and an extensive range tax and accounting services for almost 100 years, you can trust our experienced team to look after you. If you can’t make it in during the day, book our after-hours service – we close at 6:30 pm Monday to Friday.