Essential Questions Your Accountant Will Ask

Are you ready to file your tax return and make the most of it?

Working with a registered tax agent can greatly enhance your chances of getting the best possible return. To help you prepare effectively, here are some important questions your accountant might ask you:

  1. Record-Keeping for Deductions
  • Do you have all the necessary records for your tax return? To claim deductions, maintaining accurate and complete records is crucial. This includes invoices, receipts, bank statements, logbooks, and other relevant documents.
  • Adequate records should include the supplier's name or business name, expense amount, description of goods or services, purchase date, and document creation date.
  • For work-related expenses, proof of expenditure and its direct relevance to your income is essential. Maintain a diary or similar record to demonstrate the connection and calculations for deductions.
  • If you use an asset for both personal and work purposes, you can only claim the work-related portion as a deduction. Ensure you can differentiate between these uses.
  • Keep your records secure for at least five years from the date you lodge your tax return.
  1. Property Transactions
  • Did you sell any property in the past financial year? Significant property-related events can impact your tax return.
  • Property sales may involve capital gains, losses, or main residence exemptions that must be reported.
  • If any part of your property was used to generate income (e.g., renting a room or running a home-based business), inform your accountant to ensure accurate tax treatment.
  • Discuss the applicability of the 6-year rule for Capital Gains Tax (CGT).
  1. Additional Income Sources
  • In today's diversified income landscape, reporting all income sources is crucial for compliance and optimizing your return.
  • Declare any additional employment income, government payments, dividends, or income from partnerships, trusts, and units.
  • Accurately report all rental income from properties you own. Rental property deductions, especially for improvements, can be complex, so provide comprehensive information for your accountant's assistance.

By addressing these questions and ensuring you have the necessary documentation, you can streamline the tax return process and work closely with your accountant to maximize your return. Don't leave any money on the table – be prepared and stay compliant with your tax obligations.