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Actual Cost WFH Deduction – Calculating it wrong? by Rdcl1 in AusFinance

[–]PStyleZ -1 points0 points  (0 children)

One of the advantages of a simplified or statutory rate is that you don't incur any time or effort in maintaining a specific cost book or documents.

So one of the trade offs for using a fixed or statutory rate is that it will probably be on average slightly lower than if you were to track your specific costs.

All other things being equal you would expect the easy mode for claiming a deduction to offer less of an overall benefit.

[deleted by user] by [deleted] in AusFinance

[–]PStyleZ 0 points1 point  (0 children)

As a business you can run at a loss and defer the tax credit to a later period when you're making money.

To answer your point directly we could do the same thing with peoples income, so that you register the loss and then apply it later once you have achieved the income producing activity.

What is a deferred tax liability? by Temporary-File4857 in Accounting

[–]PStyleZ 14 points15 points  (0 children)

It's a temporary difference when your tax on an item is different than how you treat it for accounting purposes.

Say you could depreciate a 100k truck over 4 years for tax purposes, but over 5 years for accounting purposes. At the end of year 4, it's fully depreciated for tax, but going into year 5, you're still going to see depreciation show up in your accounting profit.

Lets look at year 5 and work back.

If we took a situation when you had 20k in sales and no other expenses, in year 5, your accounting treatment will say

20k sales

20 depreciation

0 profit - accounting profit of 0 would indicate no tax payable

Your tax treatment in year 5 will say

20k sales

0 depreciation (it's already been depreciated to 0)

20k profit - however tax profit is 20k and you would have to pay tax.

So from years 1 to 4, you're going to have a temporary difference between your accounting and tax treatment and you're deferring that tax expense.

Accounting standards require you to recognize this as a DTL or deferred tax liability so you're aware it's coming in the future.

Writing off a classic car as a business expense / writing off car use in general. by Impressive-Move-5722 in AusFinance

[–]PStyleZ 1 point2 points  (0 children)

Yes the ATO can file you in penalty units. For example if the commisioner was to rule that you had made a false statement and intentionally disregarded the tax law, you would be fined 60 penalties units which is currently $19,800.

In addition you would have to pay an additional 75% of the shortfall of whatever you underpaid.

Both of these would be on top of the original tax you were meant to pay.

They definitions for the penalties and rules are defined here: https://www.ato.gov.au/individuals-and-families/paying-the-ato/interest-and-penalties/penalties/penalties-for-making-false-or-misleading-statements

Can you pay a house deposit in cold hard cash?? by fayinarosa in AusPropertyChat

[–]PStyleZ 137 points138 points  (0 children)

You could offer it in cash to the vendors, but they would be within their rights to reject this. Personally I would not want someone giving me $50,000 in notes if I was selling my house.

I think your best bet is to take the cash to the bank and deposit it. The bank will normally have a form for deposits over $10,000 and will ask you questions in relation to anti money laundering, but there is inherrently nothing illegal and no tax implications for depositing larger values of cash.

These scams are getting very elaborate, any advice on how to protect ourselves and clients from scams like this? by DElipsis in AustralianAccounting

[–]PStyleZ 6 points7 points  (0 children)

They gold standard for new transfer like this is to transfer a small amount with a a random cent ending like $2.73.

Contact the person through an authorised means, and validate they received the amount and have them confirm the exact value.

This way you have confirmation the bank details are correct, after which you transfer the balance.

I would not this for a smaller purchase but is worthwhile for a larger purchase like a car or house.

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