Year End Tax Planning – April 2014

April 17, 2014 ,


The team at DIAGNO want you to start thinking about 30 June, NOW. The day will be here before we realise, and we need to prepare to ensure we maximise your personal benefit from the unique opportunities this date provides.

The value in year-end tax planning:

– Avoid unpleasant surprises
– Review expenses
– Plan for future cash flow
– Make better business decisions
– Take advantage of potential deductions

A few strategies to consider:

1. Can any business or personal income be deferred to after 30 June 2014?
2. What deductions can be maximised before 30 June?
a. What is available to claim before 30 June?
i. Review carefully any contracts with fees attached, consider if fee is incurred as at 30 June, even though not payable until after 30 June.
ii. Critically review schemes/investments/projects offering large up front deduction and no income payable until later years.
b. Consider prepaying interest on investment loans, checking eligibility.
c. Should trading stock be revalued?
d. Is there obsolete stock that should be written off?
e. Bad debts – are there any to be written off before year end?
f. Salary sacrifice into super (note maximum contribution thresholds).
g. Director Fees – ensure appropriate documentation (authorised resolutions) is completed if the company wants to claim a deduction in the current year.
h. Be aware of depreciation proposed changes – loss of car special write-off and reduction in immediate write-off from $6,500 to $1,000 – the repeal of legislation is not yet passed.
3. Are there any capital losses that can be crystallised pre 30 June?
4. Consider whether any assets of the company have been used by shareholders or associates, FBT may apply.
5. Make effective trustee resolutions for distributions of profits from trusts before 30 June.

There is no magic formula, tax planning is ‘case by case’. Generally, the more cash available, the greater the options. But this is not the only consideration. Pre 30 June tax planning strategies are always specific to YOUR situation.

In summary, please consider:

– Where are you at the moment?
– What’s changed for you this year?
– What are your objectives for next year?
– What challenges do you think you’ll face?
– What can we do to help?

Please call the office to discuss your year-end tax planning strategy.

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