1. Using a WORD document, mpare a set of work papers. Include detailed explanations about whether each Item Is assessable Income or gives rise to an allowable deduction. Show all workings, explain why you have treated items as you have, and provide appropriate authority for your decisions by referencing sections of the legislation, case law and! or income tax rulings. Tour work papers need to be complete so that they can be reviewed by your supervisor and relied upon In the event of an audit in the future. They should also be reconciled and cross-referenced to reporting labels on the income tax return. The document should be Indexed with a separate heading for each category you deem appropriate. Some suggested headings include: Work Related Income Other Income Capital Gains Rental Property Deductions Tax Payable, Offsets 8: Levies {include all levies and offsets considered, explain why they are or are not applicable and reconcile to the tax return calculation]. Organise your work papers so that amounts are directly transferrable to Items on the Income Tax Return and provide cross references to the tax return label where the amount is reported. Make sure that all calculation steps are visible in your workpapers. This is particularly Important if you do calculations In Excel and paste them into your Word document. "Oepreciation calculations can be done using Handitax with the total transferred back to the rental property section of your workpapers for reconciliation purposes