FY2023 Tax Return Guide by Cordner Advisory accounting firm
Tax season can be a challenging time for both individuals and businesses. The Australian Tax Office (ATO) provides information to taxpayers about changes to various taxes and deductions every year. At Cordner Advisory, a trusted Gold Coast accounting firm, we have the expertise to guide you through evolving tax updates this tax season.
This guide will highlight key areas to focus on this tax season. These include:
Deductions for rental properties
Expenses related to work
Capital gains tax
At Cordner Advisory, we’re here to give you helpful tips to understand the changing tax landscape and make the most out of your 2023 tax return.
Want to maximise your tax deductions and navigate the intricate tax landscape with confidence?
Rental Property Deductions - Maximising Your Benefits
Rental property ownership is a common investment avenue, but it comes with its share of tax complexities. Data has revealed that 8 out of 10 rental property owners make mistakes on their 2023 tax returns. This could lead to rental property owners not getting the deductions they're entitled to. Let's explore this area in more detail.
Rental Income Reporting
One common mistake identified is the omission of rental income. Accurately reporting rental income is essential to avoid potential issues with the ATO. Look out for all sources of rental income, including rent received through platforms like Airbnb or Stayz.
Property-Related Deductions
Property-related deductions can significantly reduce your taxable income. However, it is important to avoid overclaiming expenses or incorrectly claiming improvements to private properties. It's important to understand what you can legitimately claim as deductions:
Interest Expenses
Interest on loans used to purchase a rental property is generally deductible. However, you must correctly apportion the interest if you used the loan for both rental and private purposes. Accurate record-keeping is vital to substantiate your claims.
Depreciation
Rental property owners can claim for the wear and tear of eligible items, like furniture and appliances. Understanding how assets lose value over time and claiming them correctly can result in significant tax savings. For an in-depth insight, consult the guide on UCA (Uniform Capital Allowance) general rules for the decline in value.
Repairs and Maintenance
Expenses related to maintaining your rental property, such as fixing plumbing issues or painting, are often deductible. It’s important to retain all invoices and receipts for record keeping purposes.
Are you prepared for the FY2023 tax shifts and updates? Speak to a Cordner Advisory expert today. Contact us here.
The Importance of Registered Tax Agents
87% of rental property owners hire registered tax agents to do their income 2023 tax returns. Working with tax experts from Cordner Advisory can assist you in comprehending intricate tax regulations in relation to rental properties. This, in turn, provides an opportunity to maximise your deductions and adhere to the tax laws.
Data Matching Programs
Sophisticated data matching capabilities, including those related to rental properties, are in use by ATO. They have recently introduced a residential investment property loans data matching program to identify discrepancies. This underscores the importance of precise record-keeping and accurate claims.
Preparing for Tax Time with Cordner Advisory
Before lodging your 2023 tax return, it's important to conduct a thorough review of your rental property records. Address any potential issues and rectify inaccuracies with the assistance of Cordner Advisory to ensure a smooth and error-free tax filing process.
““In the ever-evolving tax landscape, Cordner Advisory stands as a beacon of guidance, ensuring both compliance and maximised benefits for taxpayers.””
Work-Related Expenses - Adapting to a Changing Landscape
Evolving Work Arrangements
The ATO acknowledges the recent transformation in the work environment, with factors such as the rise in remote work and changes in commuting habits playing a significant role. As Australians' work arrangements evolve, it's crucial to ensure that your claims accurately reflect your current situation.
Avoid 'Copy-Paste' Practices
One frequent mistake taxpayers commit is merely replicating claims from the previous year without acknowledging new updates. It's important to highlight the importance of precise claim calculations and the avoidance of taking shortcuts.
Working from Home Deductions
Working from home has become the new normal for many individuals. New modifications have been introduced to the methods for claiming home office expenses, making it essential to grasp these updates. You can now choose between the actual cost method or the revised fixed-rate method, provided they meet eligibility and record-keeping requirements.
How confident are you navigating FY2023's tax changes? Contact Cordner Advisory today to learn more.
The Role of Record-Keeping
Maintaining meticulous records is key to substantiating your work-related expense claims. Comprehensive records support your adherence to tax guidelines but also provide flexibility in choosing the deduction method that suits your circumstances best.
Seek Professional Guidance
Given the evolving nature of work, consulting with experienced tax professionals, like Cordner Advisory, can be highly beneficial. They can help you navigate the intricacies of work-related deductions so that your claims align with your current work situation.
Capital Gains Tax - A Deeper Dive
Capital Gains Tax (CGT) is a complex area of taxation that applies when you dispose of assets such as shares, cryptocurrency, managed investments, or properties. It's essential to understand the tax implications of CGT and comply with the relevant tax obligations. Let's explore CGT in more detail.
Understanding CGT
CGT is triggered when you sell an asset for a gain. However, certain exemptions apply, and understanding whether CGT applies to your situation is important.
The Main Residence Exemption
Generally, your primary residence is exempt from CGT. However, exceptions exist if you've used your home for income generation, such as renting it out through platforms like Airbnb. In such cases, CGT may apply.
Record-Keeping for CGT
To calculate your capital gain or loss accurately, you must maintain records including information for the income-producing period and the portion of the property used for income generation. Failing to keep these records can lead to complications when determining your CGT liability.
Making the Election
If your property qualifies for a CGT exemption, it's essential to make the election in your 2023 tax return. This supports your compliance with CGT regulations and helps avoid potential penalties.
Honesty Is Key
Attempting to conceal gains from asset disposal is not advisable. There are sophisticated methods and data analysis techniques in place to detect unreported capital gains. It's important to report all gains accurately to avoid legal consequences.
Want to maximise your tax deductions and navigate the intricate tax landscape with confidence?
Why is Cordner Advisory your go-to for expert help with taxes this season?
Partnering with Cordner Advisory ensures a smooth tax season. It can be difficult to navigate taxes, especially when it comes to rental property deductions, work expenses, and capital gains tax. Working with tax experts, such as Cordner Advisory, can reduce stress and help to maximise deductions while following established tax guidelines.
Our Broadbeach, Gold Coast accountants at Cordner Advisory offer personalised tax advice and assistance tailored to your specific financial situation. Whether you're a rental property owner, a remote worker, or an investor dealing with capital gains tax, we're here to support you throughout your tax journey. By understanding the ATO's key focus areas, staying informed about tax regulations, and leveraging our professional guidance, you can optimise your 2023 tax return and reap the financial benefits you rightfully deserve. Don't hesitate to connect with us for expert guidance, ensuring a seamless, rewarding, and confidently managed tax season.
Are you ready to navigate the 2023-2024 tax with precision and expertise? Click here to connect with Cordner Advisory today!
FAQ | FY2023 Tax Season:
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Key tips to accurately claim your rental property deductions include:
Keep meticulous records of all rental income and expenses.
Apportion interest expenses correctly if your loan was used for both rental and private purposes.
Understand which property-related expenses are deductible, such as repairs, maintenance, and depreciation.
Consulting with a Gold Coast accounting firm like Cordner Advisory can support you in maximising your tax deductions 2023 while staying compliant.
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When claiming work-related expenses in the context of changing work arrangements, it’s important to consider:
Avoid copying and pasting previous year's tax claims without reviewing them.
Carefully assess whether your tax claims align with your current work situation.
Familiarise yourself with the revised methods for working from home tax deductions.
Engaging with Cordner Advisory, a reputable accounting firm in Broadbeach, Gold Coast can provide insights tailored to your specific situation.
Keep comprehensive records to substantiate your tax claims, as they offer flexibility in choosing the most suitable deduction method and enhance your potential for maximised tax deductions.
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Generally, your main residence is exempt from CGT when you sell it. However, exceptions exist if you've used your home to generate income, such as renting it out through platforms like Airbnb. In such cases, CGT may apply. It's important to keep records of the income-producing period and make the necessary election in your tax return 2023 if applicable.
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Failing to declare capital gains accurately on your 2023 tax return can have serious consequences. The ATO has sophisticated tools and data-matching capabilities to detect unreported capital gains. It's essential to be honest and transparent about your capital gains to avoid legal penalties and financial repercussions.
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Cordner Advisory is your trusted partner during the 2023 tax return season. We offer personalised tax advice and assistance tailored to your specific financial situation. Whether you need help with rental property deductions, work-related expenses, or capital gains tax, our experienced team of accountants in Broadbeach, Gold Coast, is here to guide you through the complexities of tax regulations, maximise your deductions, and support compliance with the ATO's requirements. Don't hesitate to reach out to us for expert support and a seamless 2023 tax return season experience.
