Taxpayers are warned not to ’double dip’ on tax deductions. Here are three common items that are often claimed twice.
1: Working from home expenses
A common mistake involves using the ‘shortcut method’ to claim working from home expenses and then claiming additional amounts for expenses such as mobile phone and internet bills, as well as the decline in value of equipment and furniture.
The working from home shortcut method is all-inclusive.
There are three methods available to claim a deduction for working from home expenses depending on individual circumstances namely: the shortcut; fixed rate; and actual cost methods.
The method that provides the best outcome can be used, as long as the eligibility and record-keeping requirements for the chosen method are observed.
2: Car expenses
The next common mistake involves using the ‘cents per kilometre’ method to claim car expenses, and then double dipping by separately claiming expenses such as fuel, car insurance and registration.
The cents per kilometre rate is all-inclusive and already covers any decline in value, registration, insurance, maintenance, repairs and fuel costs.
3: Reimbursed expenses
Finally, taxpayers cannot claim expenses that have already been reimbursed by their employer.
If you have any questions or require any assistance with tax deductions, tax return preparation or tax planning, please contact our team on 03 9708 8801 or email info@rvpartners.com.au for further information.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. The information contained within this document is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Robinson Voss Partners (RV Partners) strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.
