Newspaper article Coffs Coast Advocate (Coffs Harbour, Australia)

Take Pain out of Tax

Newspaper article Coffs Coast Advocate (Coffs Harbour, Australia)

Take Pain out of Tax

Article excerpt

Seven Common Tax Return Mistakes ..... from Mr Taxman, Adrian Raftery

THE new financial year has arrived which comes with the annual obligation to submit our income tax return by October 31.

For many of us, the process is as painful as having your teeth pulled but the rewards can be great. Adrian Raftery, author of 101 Ways to Save Money on Your Tax a Legally! 2012-13 edition (Wrightbooks, June 2012, AU$24.95) shares seven common traps to avoid when doing your tax this year.

1. Omitted income a this year the ATO data-match over half a billion transactions and expect to contact 400,000 taxpayers with discrepancies on their interest, dividend, trust and managed fund income. This process is quite lucrative as almost $330 million in tax revenue was generated last year due to audit investigation by the ATO. Overseas income and the cash economy are particular areas of focus this year. You can run from the tax man but you can't hide.

2. Car log books a if you make a claim for motor vehicles expenses under the log book method then it is obvious to make sure you actually have a log book prepared in the correct format. It must be for a continuous 12-week period and prepared within the past five years. If you have changed your car or your job duties since you did your log book then you must prepare a new one.

3. Rental properties a the ATO always sees a number of errors with rental property tax returns including initial repairs, interest on loans which include a private component, borrowing costs and claiming depreciation without a quantity surveyor's report. I have also seen a number of returns where the taxpayer simply didn't realise everything that they could claim, particularly land tax and strata levies. If you have an agent, then ask them for a summary of income and expenses to make the return process easier. …

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