The 30th of June always seems to creep up on people with tax returns to do. In many instances, people who visit accountants to do their tax returns miss out on opportunities because certain things must be done before June 30th to receive specific tax advantages.
Here are some helpful tips for dealing with year-end tax planning.
If an asset has been sold during the year (such as an investment property or business asset), an accountant should be visited before June 30th to work out how much capital gain has been made and what can be done to reduce the tax impact on that gain. This could include bringing forward other expenses or making more significant contributions to superannuation. For the sale of business assets, there may be very generous concessions available.
Tax deductions are now available to most taxpayers but can only be obtained in the year that the contribution to superannuation is made. It may also be possible to contribute more than what an individual may have thought they were able to do so. Tax agents have access to the exact amount that individuals can claim a tax deduction for but need to be met with long before June 30th so that they can thoroughly explore their options at tax time.
There may be expenses due early next year, but tax deductions can be brought forward for the next year by pre-paying them in June.
Instant Asset Write Off
Most businesses can now claim a tax deduction for the total cost of items they buy for their business. Find out more information in our article devoted to Instant Asset Write Off on page 4.