If you haven’t yet had a chance to get your tax return organised, Online Tax Return is here to help take the guesswork out of this tax season. Our knowledgeable team has put together a list of real estate tax deductions.
Car and travel
Our tax professionals here at Online Tax return predict that petrol and vehicle claims will most likely be the primary form of expense when it comes to a real estate agents’ tax deductions. The cost of fuel, parking, taxi’s and ubers and public transport are all claimable deductions, provided these expenses were all utilised for work purposes and you have record to prove it. Be sure to keep a diary record/logbook of the kms travelled throughout the financial year.
You may claim the cost of using your own car to travel between workplace to workplace, in this case it may be office to office, or between office to home inspections. This may include the cost to travel to training courses or meeting, to erect signage at a property or to take photographs. You are unable to claim travel between your private home of residence to work, or work to home as this is considered private travel.
If you are required to stay away overnight somewhere, you are entitled to claim the cost of accommodation and meals if you were not already reimbursed by the company for this cost.
To be able to claim the cost of clothing purchased for work, it must be compulsory and include a company logo. This includes the cost of alterations and laundry for these items of clothing. You are not entitled to claim of the cost of everyday clothing worn to work. You may also claim the cost of buying things like sunscreen, sunglasses, umbrellas and hats should your role require you to work outdoors at any point in the day.
Home office expenses
If you work from home, a portion of your gas, electricity, and other running costs of your home office is claimable in your deductions. This includes depreciation of office equipment including furniture and computer equipment. You may also claim costs of owning or renting the home (mortgage or rental payments). There would need to be a designated work space, like a study to be eligible for such deductions.
The cost of your mobile or home phone calls made for work purposes are a claimable expense. There is a choice of two ways to calculate the cost of your work phone expenses.
Work-related self education courses run by TAFE or universities are included in approved expenses for real estate workers. The education must be directly related to your current employment and would not allow you to get a job in a different industry. Short courses including first aid, computer skills or sales and management courses are also claimable but must still relate to your current position of employment. You may also claim the cost of travel to attend such courses.
Work station, tools and equipment including diaries and briefcases or a handbag to carry a laptop, electronic organisers, laptops and mobile phones are also a claimable expense.
If there are any costs associated with decorating a home open for inspection with flowers, décor etc., these costs are a claimable expense if the cost was out of your pocket, not reimbursed by your employer and a record or receipt is kept.
The cost of any work-related magazines, journals or books, the cost of purchasing newspapers which include the property section, and the cost of renewing your certificate of registration annually are all legitimate expenses.
General tax deductions to remember available to all employees are the cost of any donations made to registered charities, the cost of bank fees on investment accounts only, the cost of income protection or accident insurance, tax agent fees from the previous financial year and the cost of travelling to see your tax agent.
If you would like any further information on preparing or completing your tax return, the team at Online Tax Return are here to help make the process a seamless one. Contact us today!