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ARCHITECTS AND INTERIOR DESIGNERS
TAX DEDUCTIONS
FY2024
SELF EDUCATION
FCT v. Finn, (1961) 106 CLR 60
The High Court allowed an employee architect, an income tax deduction for the cost of an overseas trip undertaken voluntarily by the architect to study modern developments in architecture. The fact that the expenditure was incurred voluntarily did not affect the taxpayer's right to a deduction.
OVERNIGHT TRAVEL EXPENSES WITH NO TRAVEL ALLOWANCE PAID
CONDITIONS
1. You must be away from your ordinary residence. You must sleep away from your home.
2. You must not stay in one town for more than 21 consecutive days (Roads and Traffic Authority of NSW case; MT 2030).
3. You must have a description of what you did and how it related to your work (the more technical the better).
4. You must keep a diary and written evidence. Try photographing these with your mobile.
5. You must apportion your expenses for days that did not include self education.
PLEASE SUMMARIZE THE FOLLOWING:
Air fares
Taxis or car hire
Accommodation
Meals
Water
Alcohol - e.g. wine & beer
Snacks
Toiletries
Reading materials - e.g. newspapers, magazines, books, etc.
Movies - e.g. DVDs, in-house, cinema, etc.
ARCHITECTS
Most countries and cities around the world will have significance architectural importance from the moment you step out your door so most of your travel expenses will be tax deductible as self education. You may need to apportion your trip for days that do not relate to your work. Please keep detailed technical diary notes (the more technical the better) of what you have experienced and take photos.
INTERIOR AND EXTERIOR DESIGNERS
Most countries and cities around the world will have signifiance design importance from the moment you step out your door so most of your travel expenses will be tax deductible as self education. You may need to apportion your trip for days that do not relate to your work. Please keep detailed technical diary notes (the more technical the better) of what you have experienced and take photos.
You may also claim the following:
HOME OFFICE
Method 1
You may claim home office electricity based on floor area e.g. 5%. x $400 (electricity bill per quarter) x 4 = $80. This area must be for the sole purpose of home office. It cannot be for multi-use e.g. dining room table.
Furniture, desks, fax machines, filing cabinets, book shelves, pictures, carpets, blinds, etc may be depreciated at usually 20%.
Depreciable Items < $300 may be 100% depreciated.
E.g. desk $250 x 100%, chair $120 x 100%, carpet $1,000 x 20%, blinds $600 x 20% = $690
Method 2
You may use the ATO 67c per hour rate to claim electricity, gas and depreciation of furniture. You must keep a 4 week diary.
E.g. 67c x 20 hours per week x 52 weeks = $696.80
WORK EXPENSES
iPhone, mobiles & home phone
Computers - iPad, Macs, laptops & desktops
Computer supplies
Stationery - Cartridges, diaries, pens & office sundry
Internet
Self education, conferences and courses.
PRIVATE USE APPORTIONMENT
If there is private use (other than incidental use) a 28 day diary is required each year or where the work % changes by more than 10%.
RECORDS - Please use Receipt Bank
You may claim $200 worth of items costing < $10 without receipts.
PLACE OF BUSINESS AT HOME
You may claim a percentage of rent, interest, home depreciation, rates, water, insurance, repairs, cleaning, pest control, gardening, etc. based on floor area.
This would apply to the following:
A small business operator whose main office is in their home.
A trades person who has their workshop at home.
A doctor or dentist who has their surgery or consulting room at home.
CAPITAL GAINS TAX IMPLICATIONS
You will lose a proportion (based on floor area and time operating at home) of your capital gains tax main residence exemption due to your income producing activity.
SUN PROTECTION AND SUN GLASSES
Includes sun glasses, sun screens and hats.
You do not need receipts for up to $200 of items that cost less than $10. The $200 is a total for the whole tax return.
TOLLS & PARKING
You do not need receipts for up to $200 of items that cost less than $10. The $200 is a total for the whole tax return.
COURSES
Courses include fees (but not HECS), books, laptops, internet, stationery, home office expenses, some travel to a place of education.
You do not need receipts for up to $200 of items that cost less than $10. The $200 is a total for the whole tax return.
The course must relate to your current income producing activity, not income that will be made in the future. e.g. Medical School expenses are not a tax deduction for a doctors income in the future.
If your course is run by a university, TAFE or college you must reduce your expenses by the first $250.
SECURITY/CRIMINAL CHECKS ATO TR 98/6 PARA 177
Security checks are usually not deductible as the expense happens at a point too soon before the income is earned.
Renewal of criminal checks may be deductible as you are currently earning income e. g school teacher's blue cards.
The ATO allows the preparation of resumes and travel to attend an interview as a tax deduction against Centrelink income.
Please keep all receipts and bank statements. We recommend Receipt Bank.
We have clients from the following locations:
Brisbane, Gold Coast, Sydney, Newcastle, Cairns, Canberra,
Melbourne, Adelaide, Perth, Darwin.
Other:
Brisbane, Albion, New Farm, Teneriffe, Newstead, Windsor,
Wilston, Bowen Hills, Wooloowin, Herston, Lutwyche, Hamilton, Eagle
Farm, Gordon Park, Fortitude Valley, Clayfield, Ascot, Hendra.
Morayfield, Burpengary, Caboolture, Bellmere, Wamuran, Narangba,
North Lakes, Mango Hill, Kallangur, Dakabin, Deception Bay, Bribie
Island, Elimbah, Kippa-Ring.
DISCLAIMER
The information provided in the above documents is not intended to
be, nor should it be construed as tax advice. Any specific
recommendation for a client can only be done after their individual
circumstances have been determined by David Douglas Accountants.
We do tax returns for individuals, trusts, companies, partnerships, contractors, ABNs and sole traders.
Liability limited by a scheme approved under Professional Standards legislation