If you think you are taking advantage of the usual tax deductions to help you save money, you might be surprised to find out there may be more options that you may be entitled to but have been neglected over time.
According to the Australian Taxation Office (ATO), the average annual claims of real estate agents in tax returns are above the national average and even more compared to other categories in the labour sector, there may be even more tax deductions that hare overlooked which could provide additional savings in annual tax returns.
Aside from the usual deductions such as advertising, work-related travel, mobile phones, home office expenses, and licensing, there are a few more that may have slipped through your fingers.
Property presentation expenses
A claim for deduction can be made on property presentation costs if you spent money in preparing for an open house and have not been reimbursed for your expenses. It may cover the amount spent on property cleaning and purchase cost of decorative items such as plants and flowers used to spruce up the area.
Greeting cards and gift items
A property manager or real estate agent who is entitled to earn commissions can claim a deduction for gifts and greeting cards intended for work-related use given out to clients, owners, tenants, and suppliers.
Allowable gift items include wine or whiskey, gift vouchers, perfume, hampers, pen sets, and flowers. However, entertainment gifts are not covered such as movie tickets, stage plays, movies, sporting events, amusement parks and centres, and holiday vouchers.
Advertising and marketing equipment
A portion of the cost of marketing equipment used for work-related activities purchased and used from the previous financial year can be entitled to a tax deduction claim. This includes costs for professional cameras, virtual reality goggles, and drones, just to name a few, as well as costs incurred for repairs made on the equipment.
For purchases made amounting to $300 or less on such marketing equipment, a claim for the full amount can be made. A claim for depreciation deduction can be made if the item costs more than $300.
Similarly, advertising costs can also be subject to tax deduction especially if you have spent advertising on a property and have not been reimbursed by your employer. The claims cover cost for letterbox drops, newspaper ads, bunting, and signage.
Personal work-related accessories
A real estate agent may also file for a tax deduction on money spent on purchasing work-related accessories such as satchel, briefcase, or handbag used primarily to carry your work-related tools such as laptops, tablets, and documents.
For those using these bags outside of work, the ATO recommends keeping a log to record the times they were used for work or otherwise so that a reasonable deduction calculation can be made come tax season.
Newspaper and industry publication subscriptions
A lot of professionals have neglected this, but publication subscriptions that contain work-related pages or content are entitled to deduction claims, however, for those that publish work-related content on a scheduled weekly or monthly dates, the deductions are calculated only for those days the related content is printed.
Clothes, dry cleaning, and laundry services
Claims can be made for the purchase of clothes used for work, as well as cleaning and upkeep for those clothing items. These include shirts, pants, blouses, dresses, jumpers, or skirts that have the company’s logo, as well as socks, shoes, and stockings that may be considered as a uniform or company’s dress code policy.
Tax agent fees
Using a registered tax agent or any related online service to prepare and process your tax returns for the previous year is qualified for a tax deduction claim, under section D10 for the cost of managing tax affairs.
Self-education and career improvement training
Costs incurred for pursuing industry-related career development training and educations are entitled to deductions from a portion of the course or subject tuition. Additionally, related expenses such as travel for class attendance, phone calls, stationery, and books can also deductible.
Donations to charities or political parties
Tax deduction claims can be made for contributions or donations of $2 or more to charities, political parties, and other approved organisations recognised by the ATO. It is required, however, to ensure that the receipt made for the donation should indicate that it is tax-deductible.
Also, no deduction claims can be made if you received something in return for the contribution or donation such as movies or raffle tickets.