Which FY for tax purposes?

Discussion in 'Accounting and Tax' started by Bandita, 1st Aug, 2008.

  1. Bandita

    Bandita Member

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    Hi all,

    Just trying to allocate income/expenses properly. I'm trying to work out which Financial Year some go into, so my question is - how does income/expense get allocated into the FY:

    For expenses - which FY do you allocate the expense:

    a) The date the invoice was raised?;
    b) The date the invoice is due for payment?;
    or
    c) The date the invoice pertains to (eg. electricity bill raised on the 2nd July, for electricity usage 1 Apr through 30th June?)

    For income:

    a) date income received
    -or-
    b) date income pertains to (eg. interest payment received on 1 Sept for period of 1 July through 30th June of previous FY)

    Thanks!
    Jen
     
  2. trajik

    trajik Member

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    Hi JenD,

    Expenses are deductible when incurred, ie; invoice date,

    and income is not assessable until actually received.

    hope this helps.

    Ross
     
  3. buzzlightyear

    buzzlightyear Member

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    Of course some expenses can be pre-paid
     
  4. twodogs

    twodogs Member

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    Or by your agent, ie rent received by agent in June and given to you in July, would be in the previous FY tax return. At least that is what I know, don't know how I know so it could be completely wrong !