Although the coronavirus lockdown has changed the work habits of many taxpayers, the fundamental tax claims for 2020 apply the same old tax principles.

Home Office

• Claim the costs incurred, plus a new simpler short-cut method of 80¢ per diary hour.

Travel

• Motor vehicle costs can be claimed under several methods, but using a logbook will almost always produce the best claim.  If you haven’t kept a logbook, how will you know what you missed out on?  Total kilometres travelled by Australia generally has declined, leading to a similar expectation for every taxpayer.  Are you any different?
   
• Other travel claims are expected to be much lower due to lockdown, so strong evidence of purpose as well as receipts can be expected.

Subscriptions

• Trade associations, etc, same rules.  Have digital subscriptions or anti-virus software subscriptions increased?

Clothing & Laundry

• Same rules as always, but use may have changed.  It is probable that most taxpayers will have reduced costs, but other habits may change e.g. sanitiser, which has significantly increased.  What are your changes?  Think about them now and make a note or ask the question.

Tax Agent Fees

• As always, these expenses are tax deductible.

Other

            What expenses have increased which you can provide a rationale and some evidence to connect to your income generation?

AcctWeb