Tax time!

[777430]

So it's that time of year where we can all (hopefully) get something back from the Taxman. How does everyone go about it? Do you have to use a tax accountant that specialises in aviation or can you just go to your local H&R Block person?

[Aimpoint]

You have to be employed in aviation first. Last I read you were still finishing off your CPL.

[you.mirin.bra]

Aimpoint your such a yuppi to know where if he has a job or not.
He's just asking a question!
Do you know where everyone is at?

[morno]

http://www.pprune.org/dg-p-general-aviation-questions/485578-helpful-suggestions-wanted.html

Have a read of that and then tell me he has a job. And then quit your ****.

morno

[777430]

Yeah Aimpoints right, I'm not qualified/employed but I'm still curious about how you all go as employed pilots in getting something back

[Aimpoint]

TR 95/19 - Income tax: airline industry employees - allowances, reimbursements and work-related deductions (As at 5 June 1996) (http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR9519/NAT/ATO/00001)

This above is a link to a ruling for aviation employees. There are quite a number of deductions, but you'll need to land that first job.

[MajorCorporalArse]

If you dare go to H&R Block you get what you deserve..

[jas24zzk]

Aimpoint may have also been partially wrong also..the kid MIGHT have held a part time job, so would still need to submit.


In answering your question directly, and keeping in mind the answers that were aimed between your eyes and how you responded, i'll attempt to give you some feedback. ONLY because you appear to want to learn something. You can almost guarantee this will be lengthy.

What works for one person, will not work for another, even in the exact same job. there are so many factors in play, there is no 1 size fits all. 2 people in the exact same job earning the exact same pay will not get the same tax return. There are so many factors to differentiate....kids, single parent..married 1 income, married incomes, HECS fees are just a beginning.

I think most of us have gone through 2 basic streams for our earliest tax returns. Dad says pay an accountant or dad says do it yourself.

Personally, i say pay the accountant... however if you were my son thats not quite the advice i would give.

If you are that interested in what's going on, goto Australian Taxation Office Homepage (http://www.ato.gov.au) and download this years Etax program. Have a good look at it, fill it in and check the results....just don't press the submit button. Play with it, see how things change.

When you start working for a living your parents will probably point you in the direction of their accountant. Take that advise and run with it. If you come up with a bigger return in your etax than them, then start asking questions..you are paying! Many accountants do existing clients children for free for the first 2-3 years.

eTax was the best thing ever invented. If you try to fill it in, you will be faced with many questions you need to research. When i got to the point i broke away from my parents accountant, i was doing my own returns and going to an accountant every 3rd year. I was using the data that the accountant generated and researching rule changes for the next 2 years.


Its a minefield shum. Good on you for looking into the future.

[Gen. Anaesthetic]

Totally agree with Jas24. Etax is excellent for educating you on the ins and outs. I feel kind of stupid that I used the parent's accountant for a number of years. As time goes on you end up with somewhat more complicated tax situations so it's always good to check in with an accountant from time to time...

Only thing is, etax 2012 is not out yet as far as I can see, so don't go and try doing this year's tax on last year's etax program!

[Aimpoint]

Of course he may have had a part time job, but the question was aviation specific.

Some more reading about the topic:

http://www.pprune.org/dg-p-general-aviation-questions/284537-tax-return-cir-training.html

http://www.pprune.org/dg-p-general-aviation-questions/419097-tax-time.html

http://www.pprune.org/dg-p-general-aviation-questions/392286-tax-time.html

http://www.pprune.org/dg-p-general-aviation-questions/353614-tax-ruling.html

[Capt Fathom]

Do you have to use a tax accountant that specialises in aviation

Trust me! There is nothing special about aviation, and that includes your tax return.

Any competent accountant will have no problem with it.

[777430]

Thanks Jas24zzk, that pretty much covers all I needed to know! I've always used an accountant however now a career change is on the horizon (I'm a vineyard manager by the way, so not so young as you all might believe me to be!) I would really like to get ahead of the game tax wise and get something back! Thanks again for the correspondence everyone, always interesting

:D

[jas24zzk]

however now a career change is on the horizon (I'm a vineyard manager by the way,

Given up on making vinegar? :p

so not so young as you all might believe me to be

I guess its score one for you :ok:

[romeocharlie]

Not all tax accountants know about aviation tips and tricks. I'm willing to bet your average H and R accountant wouldn't know what jeppesens are, let alone allowances available should your flight bag exceed 10kg(or whatever it is) etc.

You do indeed pay for what you get, considering you get back at least a 1/3 of what you pay for tax, it makes sense to pay more than the basic amount for someone if the return is increased by a couple of thousand (and not from dodgy ac's either). As for reading tax bull****, when it comes to having an ABN/property rentals etc., I for one have better things to do with my time.

[Howard Hughes]

Cynical, the award is only the minimum payment, it's up to you to negotiate either individually, or collectively, what you are worth according to your 'training, responsibility and required abilities'. ;)

[404 Titan]

Cynical Pilot

Would you mind elaborating what you mean when you say that the ATO sees a flight instructor as a separate career to that of a pilot?

[DC3Qld]

Not a separate career, just a different occupation code used by the ATO mainly when reporting taxpayer statistics to the ABS, but can also be used when targeting specific occupations for audits. There a different codes for helicopter pilot, ship pilot, fixed wing pilot and flying instructor.
Lies, damn lies and statistics!

[404 Titan]

DC3Qld

As long as that’s all it is. The stupid idiots 20 years ago disallowed my self education costs for an instructor rating on the grounds that I wasn’t working as an instructor beforehand. I was though working part time as a charter pilot. What they didn’t realise though when they took me on was that I had an accounting degree. By the time I had finished with them they looked more than just stupid before the judge. I got my deduction plus a ruling for costs. They then tried auditing me for the next three years in a row. By the third time a stern letter claiming ATO harassment and if it didn’t stop immediately I would see them in court again put an end to that as well.