Never a better time to buy a Tote...

Handbags are tax deductible...so just think you could almost be saving money, even making money next time you buy your next handbag!

Bianca Hartge-Hazelman the founding editor of women’s online money magazine Financy.com.au tells us that "THERE’S never been a better time to hit the shops". Despite reports to the contrary, it seems women may be able to claim handbags on tax. 

Hooray I say....I will be certainly putting a claim in for my Hampton Tote this year. I use it everyday as it's the perfect size for fitting all my work and daily essentials in. The tax office also thinks that a Tote is the perfect choice.

Bianca advises that "Handbags that are large, such as tote bags, and those with lots of compartments are seen to be more suitable for carrying work items compared to a smaller clutch-type handbag".

To know more about the ins and outs of claiming a handbag you can visit News.com or read on below...oh and if you are thinking you are in need of a "tax" friendly Tote then look no further than here (and just to make the deal even a little sweeter enter the code TAXTOTE for 20% off - making money I know :).

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ARTICLE SOURCE FROM News.com

Accountants are trying to clarify tax rules for women, following reports that suggested that the Australian Tax Office (ATO) makes it easier for men to claim deductions for briefcases than it does handbags.

“I find it hard to see how the two situations are different for a man and woman. The only difference I see is that one bag is called a ‘handbag’ and the other a ‘satchel/briefcase’,” said Whitehead Dingley & Betar chartered accountant and partner Kate Hills, who claims a tax deduction for her work handbag.

Assistant Tax Commissioner Graham Whyte has opened the door for a greater number of claims to be made on handbags by clarifying to news.com.au that a person “can claim a deduction for assets that are predominantly used for work purposes, such as bags and satchels used to carry work papers or electronic devices, to the extent that such items are used for work purposes.”

Mr Whyte said that “it is the use of the item rather than its description that is relevant. For example, if a briefcase is primarily used to carry lunch and other personal items to work it is being used in a similar way to a handbag and no deduction for its cost would be available.”

Paul Brassil partner private clients at PricewaterhouseCoopers said it may be prudent for a woman to keep a record of the work use of a handbag, ideally by using a logbook for a period of about three months, in the event that the ATO decides to audit a person’s tax affairs.

“Fundamentally if you are carrying work items to and from work, be that a laptop, work papers and minor personal items, then you are in a position to claim a reasonable deduction for the cost of a handbag or manbag,” he said.

Some bad news — the ATO isn’t going to let you claim this $2690 Loewe bag. Because did you really need to spend that much to carry your papers around?

Department store giant Myer is happy about this news, for obvious reasons.

“Speculatively speaking, we would expect to see an increase on larger totes, however it would all be dependent on how the tax department define a work bag as opposed to a general handbag,” said a spokesperson.

The cost and size of a handbag, as well as a person’s profession, are likely to be issues that the ATO looks at when reviewing a claim.

Handbags that are large, such as tote bags, and those with lots of compartments are seen to be more suitable for carrying work items compared to a smaller clutch-type handbag.

“If you have an ultra-expensive item then you are very likely to get a challenge from the Australian Tax Office (ATO) if you make a claim,” said Mr Brassil.

“Most work expenses don’t demand an expensive purchase to carry out the work-related function such as carrying items, so the ATO may view most of the cost is of a private nature,” he said.

Bianca Hartge-Hazelman is the founding editor of women’s online money magazine Financy.com.au

 

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