The most unusual deductions Australians can claim
Dogs, garden gnomes and dancing lessons are some of the most unusual claims made by Australian taxpayers.
Depending on your area of ââemployment, there is a range of tax deductions that might be available.
The rule of thumb is that if you have incurred an expense in the course of your work, you can claim it.
For example, if you are a taxi driver you can claim fuel for your car, while if you are a trader you can probably claim a deduction for an array of essential tools.
Mark Chapman, director of tax communications at H&R Block, asked the company’s network of tax advisors about some of the most outlandish claims taxpayers have attempted to make over the years, including what worked and what went wrong. failed.
âBearing in mind that we deal with over 750,000 Australians a year, it’s fair to say we’ve seen our fair share of weird complaints,â he told news.com.au.
From clowns to dogs to costumes, here’s a look at what people can and can’t get away with.
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The family dog?
It turns out that in limited circumstances, you can actually claim the expenses of buying and sitting a dog, like bills for food and pets.
âThe two most common scenarios where the cost of a dog is tax deductible are agriculture, where an animal can be used to herd sheep, for example, and security, where the cost of a guard dog is to patrol business premises may be eligible, âMr. Chapman said. âOther than that, forget about it. “
So for the client who “occasionally” took his dog to work to keep his tools and equipment and on that basis tried to claim the dog’s food, there wasn’t much success, he said.
“How he kept his tools and equipment on the days he wasn’t taking his dog to work, we never found out,” said Chapman.
Suit
Mr Chapman was told the story of a high profile TV personality, who every time he graced the screens wore a new costume and then donated it to a charity store.
“Not only did he want to claim a tax deduction for the cost of each new costume, which he claimed to be required to wear to maintain his personal brand, but he also wanted to claim an additional tax deduction for the donation to charity,” said Mr. Chapman said.
“Unfortunately for him, the ATO does not allow deductions for the cost of conventional clothing, a category that includes business suits, even those purchased by television stars.”
As for donations, he had no receipts from the association, so there was no possibility of deduction either.
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Cosmetic improvement
Also with the rich and famous, a well-known model had undertaken various cosmetic procedures to maintain her appearance.
She argued that the work done was aimed at keeping her career past the point where she would otherwise have vanished had she not done the job, Mr Chapman said.
âAs such, she argued that there was a clear link between cosmetic surgery and getting her income,â he said.
âIt’s an argument that seems superficially convincing, but it’s not an argument that the ATO would agree with; for them, medical procedures are rarely, if ever, tax deductible, for whatever reason.
Breast augmentation may be tax-banned, but adult performers may attempt to successfully argue items as diverse as dance lessons, hair care, oils, lingerie, costumes, and sex toys. .
Garden gnomes
Landlords rejoice – if you rent out your home from the usual deductions like mortgage interest, rates, and repairs, you can also claim items that improve the curb appeal of your property.
âWhether you think garden gnomes do it or not is really a matter of personal taste, but several clients have successfully claimed them for their rental property,â said Chapman.
âHere’s a tip: make sure the gnomes are good for your rental property; if they end up in the garden of your family home, they are not deductible.
Costumes and accessories
Another profession that can generate very strange tax deductions is that of circus performers, said Chapman.
âNot many people can successfully claim a clown costume, but a client who made it was a professional clown,â he said.
âThe entire costume was allowed, including the red nose, as a work-related dress claim. Likewise, the professional sword swallower was able to claim the ceremonial swords used in his act.