Can we round expenses on our tax returns?

[poppy]

I noticed last year that many areas of e-tax do not allow entering of cents. I am unable to find any documentation regarding how or whether amounts should be rounded in this case.

If I were to round up everything rather than simply removing the cents, it might make a difference of say $50 across the entire tax return, as I have a lot more expense entries than income entries! Likewise, if the ATO requires cents to be removed rather than rounded, that would work in the ATO's favour significantly.

Doesn't make much difference to the individual, but surely a significant difference to the overall tax take.

So I'm just curious as to what the documented rules are here...

 

[marg4000]

I round up or down depending on the benefit to me.
Marg

 

[LynnH]

Have searched previously and haven't found any 'rules' as such - my tax info goes into an Excel spreadsheet which rounds up/down according to the conventional rules of rounding - seems to be OK with our accountant.

Cheers
Lynn

 

[marg4000]

"conventional rules of rounding" - hmmmm, isn't that income down expenses up ????
Marg

 

[krgambling]

Hi there,

My understanding was that all amounts are rounded down to whole dollars (essentially you take off any cents when listing amounts).

e.g. $10.01 is reported as $10
e.g. $10.99 is reported as $10

Cheers,
Keith.

 

[Pushka]

You think this is bad, try rounding when you are reporting salaries and tax deducted for a business!

 

[LynnH]

"conventional rules of rounding" - hmmmm, isn't that income down expenses up ????
Marg

Love your definition, Marg!!!

Unfortunately, it's anything below 50 cents rounded down, and anything 50 cents and above rounded up - whether it's income or expenses.

Cheers
Lynn