Balancing passion projects and client work with quotes, invoices, and accounting already strains freelancer bandwidth. But don’t ignore potential tax deductions to ease financial management.
As the fiscal year wraps up, strategically revisit these 6 overlooked areas prime for additional creative freelancer tax savings.
1. Instant Asset Write-Offs
Purchasing editing rigs, drawing tablets, video gear or other eligible creative tech by June 30, 2023 may qualify for temporary full expensing.
Just ensure assets adhere to ATO technical eligibility criteria within usage timeframes. And remember, maximising deductions now reduces future asset offset availability.
2. Depreciation of Existing Assets
Your current creative hardware, software, electronics and equipment incrementally qualify for annual wear and tear deductions.
Catalog and calculate accurate values to right-size annual depreciation claims. Capture everything eligible to optimise legitimacy.
3. Prepay Expenses
Paying future software subscriptions, membership dues, continuing education costs or advertising slots early pulls forward potential deductions.
Just weigh cash flow tradeoffs next financial year if less expenses remain to offset creative freelancer income without ample lead time.
4. Tallying Finance Costs
Tally interest and fees from credit cards or lines of credit enabling operations to chip away at tax obligations.
5. Dedicated Home Office Space
Converting portions of household costs like cleaning, utilities and supplies needs proper workspace use substantiation. Calculate home office hourly usage rates meticulously.
6. Motor Vehicle Expenses
Meticulously logging freelance-related travel for client meetings, location shoots, conferences and the like converts portions of motoring costs into potential deductions.
And So Much More...
Production expenses, legal and accounting fees, telecoms, depreciation schedules - business costs add up. Continually capture proof across operations to inform annual tax prep.
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