If you are an employee, a rental property owner or a small business owner, you must understand what you can claim on tax. However, a lot of people miss out because of forgotten tax deductions. You can claim deductions against various expenses, including tax agent fees, education, home office expenses, travel expenses and more.
Here are 5 forgotten tax deductions:
1. Income Protection Insurance
People are allowed to claim the costs of their income protection premiums. However, the policies taken must be separate from their Superannuation. Therefore, the premium is not tax-deductible if their income protection is a part of their super package. The costs are deductible if their insurance policy is outside of their Super.
2. Advertising Cost
Property managers and agents can claim a real estate tax deduction for their advertising costs, including advertising through bunting, signage, letterbox drops and newspapers. However, the property managers and agents must be entitled to earn a commission and their employers have not already reimbursed them.
3. Membership Fees and Licences
The law requires several professionals to have a license to practise and hold specific memberships. Some professionals can decide to join industry bodies and unions. These professionals pay fees to secure a professional membership, a certificate, and a licence. Therefore, these fees are tax-deductible.
Related Reading: Tips For Finding Work-Related Tax Deductions For Self-Employed
4. Investment Losses and Bad Debts
Share traders can claim investment loss this year. However, share investors cannot claim it. Share traders can speak to their financial advisors to discuss the steps to take to minimise the impact. Financial advisors will show them how they can offset the loss against their other incomes, including wages and salaries.
5. Tax Agent Fee
Business owners can use registered tax agents to prepare and lodge their tax returns. They are allowed to claim the tax agent fees and the associate travel expenses. Therefore, business owners and individuals should contact a professional in claiming since they can claim tax agent fees in their tax returns.