If the ATO ever decides to audit your tax return then you will be glad that you followed the three golden rules when it comes to deductions.
Did you pay for it?
For example, you can’t claim a deduction for a gift and you can’t claim a deduction for an item that you bought but then received a reimbursement from work.
Is the expense related to your income and claimable?
Can you validly claim that the expense was used in the course of gaining or producing an assessable income? Secondly is the expense claimable.
Many types of claims have limits to how much you can claim, for instance if we are using cents per kilometer to claim work-related car expenses, the maximum you can claim is 5000 kilometers. But our advice here is to include what you think is a valid claim and we can review the tax return before lodgment.
Do you have a record to prove it?
In order to conduct business or work, we all need many things in common such as office supplies, electricity, mobile phones, vehicles and so on. Recording these expenses is vital to claim the maximum amount possible.
You need to have the invoice, receipt, bank statement showing the debit or the diary to prove the purchase. Please note the bank statements can only substantiate the claims not exceeding $75. In other words, if the purchase is more than $75, you need to the invoices to prove the claims.
Let Caroline at TaxGo claim the maximum deductions on your next tax return.