Australian workers may deduct work-related car expenses from their taxes without a logbook using any one of three methods, according to the Australian Taxation Office. One can choose the most advantageous method, but Vasin Accountants and Taxation Advisors suggests that a fourth method, the logbook method, provides the largest tax deduction.Know More
One method of deducting work-related car expenses is by using cents-per-kilometer, states the Australian Taxation Office. In this method, the taxpayer uses a set rate for each business kilometer. Another method is by claiming 12 percent of the original value of the car. The third method is to claim one-third of the business-related car expenses incurred during the year.
The ATO also notes that there are guidelines regarding how many business kilometers the taxpayer drove in a year. Individuals who traveled 5,000 kilometers or fewer in the tax year may choose only between the logbook and the cents-per-kilometer methods. Individuals who traveled more than 5,000 kilometers in the year may choose from any of the four methods. The ATO notes that those who use the cents-per-kilometer method or the percentage of original value don't need a written record of kilometers driven, but they may be asked to show how they calculated the business kilometers. Those who use the method of calculating one-third of expenses must keep records that include odometer readings.Learn more about Taxes
TurboTax reports that independent contractors can deduct half of the self-employment tax, health insurance premiums, office expenses, retirement plan contributions and business travel expenses. Independent contractors can also deduct the mileage accumulated on a personal vehicle when driving for business-related purposes. About.com notes that business equipment, employee benefits and wages, advertising costs, professional dues, professional services and repair costs can also be tax deductions for independent contractors.Full Answer >
Closing costs are the expenses that a buyer of a property incurs in addition to the price of the property. Closing costs are also referred to as settlement costs. Closing costs include loan origination fees, appraisal fees, title insurance and taxes.Full Answer >
Stipends are taxable when they are for general living expenses. When it comes to stipends from a grantor, if the person has to perform duties to earn the stipend, then it is also taxable. Stipends are not taxable when they are applied to education-related expenses and college tuition.Full Answer >
The Federal Unemployment Tax Act provides payments of unemployment compensation to workers who have lost their job, according to the IRS. Under the Act, employers pay both a federal and state unemployment tax; they are not deducted from employee wages.Full Answer >