It's tax time - are you prepared?

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End of Financial Year for 2017 is just around the corner and NOW is the time to review your financial position and undertake taxation strategies that may benefit YOU and YOUR business.

 

• Small businesses can immediately deduct the business portion of most assets if they cost less than $20,000 and purchased within the current financial year. This deduction can be used for each asset that costs less than $20,000 whether new or second-hand.

 

• If you happen to own or be buying a rental property, be sure you have arranged a ‘property depreciation report’ so you will be able to claim the maximum amount of depreciation and building write-off deductions.

 

• Make time to review your debtors list prior to 30/06/2017 to allow you the opportunity to write off any bad debts. Be sure to document each bad debt as evidence the bad debts were written off prior to year-end.

 

• To be confident of claiming your employee superannuation payments in the 2017 financial year, make certain payments are received by the superannuation fund or the Small Business Superannuation Clearing House by 30/06/2017.

 

• If you have made a capital gain from the sale of property or shares, it is important to note that the critical date for capital gains tax is the contract date and not the settlement date.

 

• If your business is in a position to bring forward expenses it may be worth considering purchasing consumable items ‘now’ and claim the deduction in the 2017 tax year rather than have them roll over into the new year.

 

• An important point that can easily be overlooked concerns those business owners who have ‘borrowed’ funds from their company which may result in a “Div7A” loan ruling. These ‘loans’ undertaken in the current year must either be paid back or a loan agreement should be entered into before the due date of lodgement of the company return. If appropriate action is not undertaken there is the distinct risk of creating an unfranked dividend in the business owner’s taxation return.

 

The above details are just the “tip of the tax strategies iceberg” and we would encourage all of our clients, suppliers and introducers to contact their tax professional/accountant to discuss what may best suit their business.

If Chase Finance are able to assist in any way with equipment finance, property loans and/or business finance, please feel more than welcome to contact any of the team to discuss your requirements.

We welcome your enquiry and look forward to hearing from you.

 

 

Disclaimer: The material and contents provided in this email are informative in nature only, and do not take into account your personal financial position. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained. Contact your Accountant or Property Tax specialist.

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