Everyone loves tax deductions. Besides the fact that people will be able to get back a few of their investments, it will also allow them to save up in the long run. The thing is, this is even more prevalent in home-based businesses, much so that there are appropriate steps to acquire them without much hassle.
If you are curious about how to get tax deductions for your home-based venture, look no further than our valuable tips below.
1. Use Your Home as an Office
This first step is as obvious as it can be. If you are using your home as an office, you will surely be able to get your tax deductions as you will be paying rent and utility bills as well. All these expenses are allowable, so make sure to note them down every time, well enough for you to claim them during tax season.
2. Get a Separate ABN
You are only eligible to have a separate Australian business number (ABN) if you operate your home business as a sole proprietorship. This means that you will be legally responsible for everything done in your home business, and hence, you will also be getting a separate tax return.
Having said that, you will also be going with a separate tax rate. This is actually good news, as this means that you will be getting deductions from your business since the company itself is considered legally separate from your personal income.
3. Write Down Whatever You Spend
You will surely know how hard it is to track your spending for the home-based business, especially as you are in charge of running your venture. One of the best solutions here in Australia is writing all your expenses down as you go anywhere. This will make it easier for you to file for your tax returns and get the deductions you deserve.
4. Save Your Receipts
This is another smart thing to do, especially if you have a home-based business. The professionals you consult here in Australia might charge you as much as $100 or even more, depending on the work they do. That said, when you file for your tax return, you can claim all these costs, which will surely lower your tax liability.
5. Be Honest with Your Employees
If you employ people to help out in the company you operate, you will get deductions in terms of the wages that you pay. However, you should ensure that you are honest with your employees about the taxes you are paying as well so that they may do the same thing.
Basically, this means that you should let everyone know that taxation is vital for your home-based business and it will be beneficial for them to do their part.
6. Ask For Help from Your Tax Advisor
The best way to get your tax deductions for your home-based business is to hire a tax advisor. This will make it easier for you to get all your deductions, especially if you are not aware of the various things that you need to be looking for.
With these tips, you will be able to get your tax deductions for your home-based business in no time! Remember to file for your ABN, keep track of your expenses, and remind your employees to ensure that they are also filing for their taxes. That should be enough for you to get your tax deductions and make it easier for you to file the required documents and other known requirements.
With all of that being said, if you are looking for small business accountants in the Gold Coast, look no further than our experts here at New Wave Accounting & Business Advisory. We provide end-to-end accounting and bookkeeping services that help scale and grow businesses. Call us today and let our advisors help you out with your taxes.