Tax season is around the corner, so it is recommendable to start preparing for the end of the financial year. Avoid preparing in the last few days in order to have time to solve any tax issues that could occur. You have nine months available to put in order all the necessary documentation that are going to be revised in the last three months before the end of the tax season. It is of vital importance to visit your accountant and discuss any tax issues that can be solved before the end of the tax year. Your accountant will give you a tax advice on how to reduce your tax and what your tax saving is going to be. Follow our guide to simple tax planning as the end of financial year is approaching.
- When preparing for the end of the tax year, do not forget to include the July and August expanses.
- In order to minimize liability of taxation for this year, make sure you pay up front all the expenses you will have next year (up to 13 months). Ask for a tax advice from your accountant and make sure this can be applied in your state due to certain conditions different states have.
- When tax planning do not forget to include all the payments that are tax deductible such as superannuation contributions, charitable contributions, etc.
- When tax planning, don’t forget to look for immediate write off asset from $1,000 to $6,500. Even though you are legally obligated to pay taxes, there are some write offs you can claim deduction on such as education, home ownership, office expenses, vehicle and travel expenses, etc.
- If you are doing your own tax planning, do not forget to include payments of dividend, royalties and rental incomes for the period after 30 June until autumn.
- Make sure you purchase equipment, vehicle or trucks, get out a loan or mortgage before June since the GST credit is a bonus on which you can claim tax deduction.
- If you own a business, one way to maximize your tax return is to pay bonuses to staff before the end of the financial year.
- Ask your accountant for a tax advice about any losses that you may have to offset. That also refers to any capital gains you might have by either playing lottery or by gambling.
- Another tax advice that you need to follow is to avoid selling an asset until after June 30th, since the selling date is the contract date and not the settlement date.
- Make sure you do all needed repairs and maintenance before June 30th to include in your tax planning and receive higher tax refund, if eligible.
- A good tax advice you need to remember is to save all your small receipts and bring forward all deductible expenses until the end of the tax season.
