categories for tax deductions

[b simpson]

Hi peoples,

I am creating a spreadsheet to track tax deductions for both personal and property tax. I would like to categorise things to help me retain the information for tax purposes. Part of it is also to remind me what I need to keep receipts for as well as making it easier for my accountant (which I will be changing soon). So far I have:

Personal:

• Self education
• travel for self education. includes accommodation, travelling expenses
• Interest
• Tools
• union fees
• tax affairs
  

Separately listed for each property

• capital expenses. Purchasing costs, travel for purchasing, legal fees, buyers agent, improvements before tenanted, interest before tenanted, etc.
• deductable expenses after tenanted. Insurance, management, advertising, rates, etc
• repairs and maintenance
• capital improvements
• interest
• rent

How do others categorise expenses? I want to be able to give an accountant a spreadsheet with all relevant numbers, and be able to track things easily. When I was self employed I used "banklink" software which worked well. I'm looking to do something similar.

 

[Paul@PFI]

Look at a tax return. Each label charecterises expenses etc.
Use that and the migration to a return is simple.

As an accountant this approach can be very annoying and messy when you get it wrong. DONT try to add in calculations - You probably wont get it right then will argue the accountant is wrong. It can save you money though to summarise. The tax agent will charge you to add up pieces of paper so a sumamry works. Examples of common client errors:
- Self Ed as work related
- Travel under work related
- Car expenses under travel or work related
- Income Protection should be label D15
- Expenses and income for rental at Item 21
- Medical expenses - Are you even eligible ?? No claim last year = No

Tax agent neeeds to see individual items too...eg Tools that cost $800 cant be lumped in with those that are $20. Your tools and union fees are all Work related Expenses.


ATO has paper copies on their website as a guide. The 2014 may be slightly different for the sections (unlikely) and comes out in a week or two. Use last year as a guide also

 

[b simpson]

Thanks Paul, I will check that out.

My main reason for doing this is to ensure I gather all receipts and capture all expenses otherwise things will get missed. Also, I want to keep capital expenses away from deductible expenses.

It will include each individual item as well as a summary for that category. I will give the whole spreadsheet to my accountant for him to go over. I won't be doing calculations, and he will be able to see all raw data anyway.

The medical category was only incase I went over the limit in one year I can capture it, but hopefully that doesn't happen.

Again thanks for the links and the info