To help reduce the stress of the EOFY, here is our breakdown of everything you need to know to get your business finances ready for tax time this year!
What the ATO is looking for in 2022
The Australian Taxation Office (ATO) will be looking at these four key focus areas for Tax Time 2022:
- Record keeping,
- Work related expenses
- Rental property income and deductions
- Capital gains from crypto assets, property, and shares
To avoid any issues when claiming, make sure you can satisfy their 3 golden rules in each of these areas
- You spent the money yourself and weren’t reimbursed.
- For expenses that are a mix of income producing and private use, you only claim the portion that relates to producing income.
- You have a record to prove it.
Need some tax time help?
The MKG team is here to make EOFY 22 as easy – and successful! – as possible for you and your business.
Book an appointment with us now – then take some time to check your records, review our tips and finish off the financial year feeling organised and well prepared for your appointment to see one of our team.
Your pre-appointment checklist:
- Confirm the income and deductions records you’ve kept throughout the year. Don’t forget to include interest from banks, dividend income, payments from other government agencies and private health insurers.
- Consider if you will be claiming work-related expenses and working from home deductions. If you work from home, you can claim a deduction for the additional running expenses you incur. These include electricity and cleaning costs for a dedicated work area, phone and internet expenses, computer consumables and stationery, home office equipment, including computers, printers, phones, furniture and furnishings – you can claim either the full cost of items up to $300 or a decline in value (depreciation) for items over $300.
- Rental income and deductions. If you are a rental property owner, make sure you include all the income you’ve received from your rental in your tax return, including short-term rental arrangements, insurance payouts and rental bond money you retain.
- Capital gains from crypto assets, property and shares. If you dispose of an asset such as property, shares, or a crypto asset, including non-fungible tokens (NFTs) this financial year, you will need to calculate a capital gain or capital loss and record it in your tax return.