Tax return time! Claim expenses paid or proportional amount?

Discussion in 'Accounting & Tax' started by househuntn, 18th Oct, 2017.

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  1. househuntn

    househuntn Well-Known Member

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    Do I claim immediate deductions such as insurance as the amount paid, or calculate it proportional to the financial year? My B&LL insurance was $646 starting mid-October so do I claim that amount, or $447.87 which is the amount for the 2016-2017 financial year?
     
    househuntn, 18th Oct, 2017
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    full amount if it relates solely to a property that is rented.
     
    Terry_w, 18th Oct, 2017
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  3. Mike A

    Mike A Well-Known Member

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    Only thing need to be careful of if the prepayment covers more than a 12 month period and is over 1k it will need to be apportioned.

    Otherwise prepayment rules apply and provided the services are provided within a 12 month period it will be deductible.
     
    Mike A, 18th Oct, 2017
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  4. househuntn

    househuntn Well-Known Member

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    Thanks, makes it a lot easier rather than working out the proportion.

    What about rent received, I understand it is when it is received by the property manager so just follow their statement, or is it at it appears in my bank account?
     
    househuntn, 19th Oct, 2017
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  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I personally think the original question indicates that there are a range of issues you dont know the answer to.

    My tip
    1. ATO rental Property Guide
    2. PAS TV on YouTube (Free and see link in my details)
    3. Then consider a personal tax adviser. The benefits will avoid serious issues and errors from over/under paying tax.

    And Yes...The agent is your agent so use their report.
     
    Paul@PAS, 19th Oct, 2017
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  6. househuntn

    househuntn Well-Known Member

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    Wow! Great resource. Thank you. Yes lots of things I don't know as I'm not in a financial related occupation but I'm hoping to learn as much as I can even if I use a professional (whether it's for accounting, buyers agent, mortgage broker etc) so at the very least I know what they are talking about
     
    househuntn, 19th Oct, 2017
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Great idea... Learn as much as you can and then use a pro and its easier, faster and cheaper. I love PCers. They are fairly knowledgeable and ask informed questions. The ones I avoid ask - So what can I claim......
     
    Paul@PAS, 19th Oct, 2017
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  8. Mike A

    Mike A Well-Known Member

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    Or wonder why you are a little more expensive than others.

    Just saw a return where a share trading course of a few grand was claimed when only dividends were received and a few shares disposed.

    Tax audit occurs. Deduction denied. Penalties and interest applied. The previous accountant turns out to be very expensive actually.

    It isnt just about getting a big refund. Its about getting it right if and when an audit happens.
     
    Mike A, 19th Oct, 2017
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  9. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Im always saying...you dont want to pay too much tax or too little
     
    Paul@PAS, 22nd Oct, 2017
    #9