Year-End Tax Tips

It is never too late or early to thinking about ways to reduce your tax bill. According to savvy tax advisors here are some of the top five suggestions: 1. Defer income. Unless you think that next year you will move into a higher personal income tax bracket you may want to defer income until after June 30. Interest, dividends, royalties, insurance proceeds or rent all count so until the money is physically received (paid/credited) it can be deferred. 2. Accelerate Deductions. So that you can get deductions and claim them in the current financial year write off bad debts, scrap stock and plant equipment of nil value, home office costs, ensure superannuation payments, etc are paid by year end. Also pre-paid expenses are deductible in the year in which they are paid. This includes things like subscriptions, business travel, business related seminars or other expenses like educational courses that relate to your business or work. 3. Gifts. If you have extra cash, donate money to an ATO approved charity on or before June 30. Save the receipts and use the charitable donations as deductions on your tax return. 4. Sale of investments. You can delay capital gains tax by delaying the sale of investments such as stocks until after June 30. 5. Tax Rebates. It pays to know what you are entitled to. What you can claim will depend on your family circumstances and income but some of the most common things to think about are: childcare expenses, private health insurance, medical expenses, dependent spouse rebate, low-income rebate plus tax offsets for senior Australians. We have a network of pre-qualified Accountants all across the country. Get matched with 3 Accounting Experts in your area now! Business-Accountants.com.au © 2012 Telstra-Sensis | Privacy Policy Powered by Quotify <

Business Tax Return Checklist Here is a list of items you'll need to give to your accountant to prepare your businesses tax return. Get tax savvy. Talk with your accountant about: tax planning strategies that will help your business save money now as well as in long term. Income Trading income Other income (royalties, rent, interest) Stock on hand - note any obsolete stock Subsidies if applicable (eg. primary producer, small business) Capital gains from assets sold Dividends Income from foreign sources MATCH ME to the 3 most appropriate Accountants in my area now! Deductions Losses Repairs and maintenance Salaries (include FBT) FBT paid Rates, land tax and insurance premiums paid Advertising expenses Interest on borrowed monies Retirement payments Bad debt written off in the year Charitable contributions and donations (over $2) Commissions Legal expenses Lease expenses (motor vehicles, premises, equipments) Losses from previous years Superannuation contributions Subscriptions Car expenses Accounting fees, tax agent fees Travel expenses R&D expenditure by registered R&D company Bank fees Borrowing costs Liabilities new loans existing loan closing and opening statements for the financial year provisions for long service and annual leave creditors on hand Accrued expenses fully reconciled mortgage or loan facilities Fully reconciled GST accounts Assets depreciable assets acquired or disposed (type, date, consideration) Capital Gains Tax assets acquired Lease commitments Debtors Fully reconciled bank accounts