For business owners, the end of a financial year is a tricky time. Most of the small business owners, like you, want to save more and more on tax returns. You can do it when you are able to cut the take of the Australia Taxation Office. Here are some simple tips for your help:
1. Minimize your capital gains tax
You have a capital gain when you sell an asset, like an investment property or shares, in a financial year. As per the ATO rule, you can have to pay tax at a marginal rate on 50% of the amount of your Taxgain. To reduce the tax amount on your capital gains, you can sell less-incurring investments, like shares. Further, you should pay the tax on your wealth growth when you realize it in a financial year. You can carry your losses forward, but not backward. Furthermore, you can lower the take of the ATO by paying the deductible interest in advance. In brief, you should take every possible effort to reduce your asset increments.
2. Claim each type of work deductions
Ensure that your claims of work-associated deductions are legitimate. Without proofs, like receipts, you can allow tax officers to make hundred of dollars from you. Keep receipts for everything such as computer equipment, phone costs, seminars, calculators, subscriptions, and technical books that can help you have deductions while paying your business taxes. Get in touch with your tax accountants Sydney if you are confused about what to include and what not to include in your claim for deductions.
3. Write off your bad debts
Bad debts, whether they are the result of liquidation or someone doesn’t want to pay, are like a nightmare for small business owners. Such debts can create issues for the cash flow in your business operation. As per the rules & regulations of the Australia Taxation Office, you can write off your bad debts, as they are taken as a loss for the company. Write off your bad debt if you have any.
4. Add to your SMF account
Start placing a portion of your bonus or salary into your SMF account in opposition to your savings. Adding to your SMF account may make you able to claim your investment is taxable, and this could help you reduce your tax return amount that you have to pay to the ATO.
5. Claim damage repairs
In your business operation, you may need to repair your office building or execute renovation to keep it updated. Whether you repair or renovate your business premise, you should disclose it in your tax returns. With it, you can get some deductions, and your tax amount can go down.
Accounting is a valuable task in a business operation. With the help of highly skilled and experienced tax accountants, you can keep your business account updated and help in tax deductions.