HOME ABOUT US ARTICLES BLOG FAQ CONTACT US
HOME ABOUT US ARTICLES BLOG FAQ CONTACT US
Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software
Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software

Articles Blog

Business Tax Tip – How to prepare for year-end accounting - Last 9 of 18 tips

images/Business Tax Tips.PNGLast week we listed 9 tips - here’s the next 9 in  how to prepare for year-end accounting to have agood finish for EOFY with the last 9 of 18 tips to action by Tuesday 30 June.

10. Offset capital gains with capital losses 

Generally, if you have incurred capital losses on your investments, you are able to offset these capital losses against any capital gains you have made. You can also use losses you have carried forward from previous years. Remember, income losses can only be offset against income; capital losses can only be offset against capital gains.

11. Consider the ideal timing for asset sales

If you are thinking of selling a profitable asset this financial year, but are likely to earn a lower income in the next year, it may be worth postponing the sale until after 30 June, as the sale is income, less the original cost. However, if you expect an income windfall from 1 July, it may be worth bringing the sale forward. As always, your decisions depend on your expectations for future asset prices, so don’t postpone a sale for tax purposes if you are expecting your investment to fall in value!

12. Franking credits: 

If you are planning on paying dividends out to shareholders before the end of the year, it is worth reviewing the company’s franking account to ensure that the company has paid sufficient tax to enable the dividends to be fully franked. This may mean paying ahead of scheduled payments in an arrangement with the ATO. For assistance with calculating your franking account balance, please talk to your tax agent.

13. Spouse and Family wages

Paying family - must be reasonable and legitimate for work performed.

14. Depreciation - Accelerated Write off – up to $20,000

The accelerated depreciation write-off for assets up to $20,000 acquired by small businesses was announced in the

up to $20,000 May 2015 budget and is available for purchase until 28 January 2019,

up to $25,000 between 29 Jan and 2 April 2019, and

up to $30,000 from 3 April 2020

up to $150,000 12 March to 30 June 2020 – (special COVID-19 stimulus measures)!.

The write off threshold was previously $1,000 and the concession only applies to businesses with an aggregate annual turnover of less than $2 million.

Also, as a boost for small businesses, the Government will extend access to a number of small business tax concessions by increasing the annual turnover eligibility threshold from $2m to $10m. These turnover levels will apply from July 1, 2016.  SEE ATO.

15. Use super to manage Capital Gains Tax

If you make a capital gain on the sale of an asset this financial year and earn less than 10% of your income from eligible employment, you may be able to claim a tax deduction for a contribution to superannuation, which could reduce or offset your capital gain. You will need to be eligible to contribute to superannuation (which means you are under the age of 65, or under 75 and meeting the work test (from 2017 now abolished), and be comfortable having your contribution preserved in super until you meet a condition of release (eg retirement decision).

16. Make tax deductible super contributions

If you earn less than 10% of your income from eligible employment (eg you are self-employed sole trader perhaps, or not employed), you are generally able to claim a tax deduction for personal contributions to superannuation. As with super, you will need to be eligible to contribute to superannuation (which means you are under the age of 65, or in some years under 75 and meeting the work test, but 2017 onwards abolished), and be comfortable having your contribution preserved in super until you meet a condition of release (eg retirement).

If you claim a deduction for it, the contribution you make will be taxed at 15% in your super fund, so your tax saving will be the difference between your marginal rate and 15% - which could be up to 45% plus Medicare levy.

17. Review your portfolio

Review your Business investment portfolio (and personal) and consider a strategic re-allocation of your investments. Consider portfolio allocations – is your portfolio heavily over- or underweight in specific industry sectors or stocks? Are you continuing to carry stocks that have exceeded your price targets or continue to under-perform – this may be an opportunity to re-balance.

18. Best Tip of all

Get advice specific to your business and situation that considers your personal position – both go together!

If you need and answer to software or bookkeeping, or a referral, call me – 0407 361 596 – plan NOW don’t delay!

“What is your tip? Consider posting a review or comment for us below!”

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 0407 361 596 Australia

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software

CATEGORIES


CUSTOMER LOGIN





Forgot your password?
Forgot your username?

YOUR CART

The cart is empty

Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software

CATEGORIES


CUSTOMER LOGIN





Forgot your password?
Forgot your username?

YOUR CART

The cart is empty

Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software
© Account Keeping Plus 2020   |   Website Design by Best Web Site Design Melbourne    |   Admin