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Part 1 – Budget reminders. Under the Hood.
Part 2 – Budget reminders. Under the Hood.
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Comprehensive list of COVID-19 initiatives and packages.
Businesses not meeting obligations warned as ATO restarts compliance programs
Employers cautioned over ‘hard and fast’ decline in turnover eligibility
‘Follow the spirt of the law’, warns ATO
$120m in JobKeeper clawed back by ATO, new compliance areas highlighted
Budget 2020 - A very comprehensive break down.
Budget 2020 - Fact Sheets
Budget 2020 - At a Glance, Overview, Outlook
Temporary home office expenses shortcut extended again
JobKeeper extension – changes implemented
JobKeeper Participants – are “workers”
Commissioner registers updated JobKeeper alternative tests
Varying Pay As You Go (PAYG) Instalments
Reminder of Medicare Levy Surcharge (MLS)
September update of latest COVID-19 initiatives.
ATO JobKeeper 2.0 guidance surfaces
Expats Return to Australia – Travel Expenses
Profession to be relied on for post-JobKeeper turnover certificates
Update of Superannuation contribution rules from July 1, 2020
Expats & COVID-19 Impacts on tax residency
Economic recovery could be slower than anticipated: RBA
High Court rules in favour of employers on personal leave accruals
JobKeeper Phase 2 - Latest Update
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Articles
Impending GST changes good news for SMEs
SMSF related-party borrowing arrangements
Primary Producer Income Tax Averaging
Active vs passive assets and the small business CGT concession
ATO issues further taxpayer alerts on key focus areas
Borrowed money to pay a business tax debt? Is the interest deductible?
Online Selling
The dangers of income splitting
Clients failing on depreciation front - property investment
Home office deductions: What substantiation will the ATO accept?
ATO advises accountants on client data swoop
ATO issues stern reminder on new backpacker tax
Debt Recovery
Government takes next step in tax cheats crackdown
Car salary packages and the deductibility of after-tax running costs
Choosing an Executor
ATO fires warning shots at cash economy exploiters
Getting a tax valuation from the ATO
5 tips to get home office deductions right
Clients failing on depreciation front - property investment

Several tax specialists and national mid-tiers have found clients are struggling to understand their rights and benefits associated with depreciation, ...


... and accountants are being told to proactively engage with clients on the matter to avoid unwanted consequences at end of financial year. 


 



       


Bentleys Sunshine Coast managing director Peta Grenfell told Accountants Daily that accountants should actively educate clients with an interest in property investment about depreciation. 


“Clients usually understand there are tax benefits associated with owning a rental property, but they tend not to understand what they need to do to access the benefits, or how they work,” Ms Grenfell said.


“I think it comes down to the relationship the client has with their accountant. The more proactive the accountant is in helping the client to maximise their deduction and understand their investment the more likely we are to see an increase in understanding.”


In an interview with Accountants Daily, Pitcher Partners' David Staples said that accountants who don’t encourage communication and understanding early can end up creating more work for themselves and their clients in the long run.


“The most critical thing is for people to actually talk in advance,” Mr Staples said.


“I say to people if you don’t talk to us before you do it we can't help you and then it's a bit late after you've bought the property to tell your accountant 'oh we've bought this property' and then you try to get depreciation or capital works schedules out of people.”


Mr Staples said that record keeping is the most important aspect to save both accountants and clients time when it comes to doing tax returns.


“One of the things accountants can actually do is help people set up ways of tracking and keeping proper records because it's hard a year and a half after you've bought the property to come and do your tax return and say where's all this information,” he said.


BMT CEO Bradley Beer said there are five key mistakes that investors commonly make which accountants should work to educate them on.


The first mistake many investors make is not claiming all the legitimate items they are allowed to depreciate.


The second is investors believing that their properties are too old to hold any deductions, when a property’s age doesn’t necessarily rule out all deductions completely.


Thirdly investors who renovate their properties are often not aware of scrapping deductions available for the assets they remove and replace.


The fourth common mistake is investors believing that because they purchased their investment property some time ago that they cannot benefit from tax depreciation or items that may have been missed in a previous claim.


Lastly, many investors attempt to do their own tax claim and miss things out.


 


LARA BULLOCK
Wednesday, 18 January 2017
accountantsdaily.com.au




20th-February-2017
 
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