Year End Business Tax Planning Strategies Adopted by Tax Agents

As a general rule, a business can claim deductions for the expenses incurred in the process of generating assessable income. Many of these deductions are obvious, such as rent, material, supplies and so on, but, there may be some expenses that could be assessed at the end of the income year to further reduce your business tax liability for the year. A business may consider the following strategies most commonly advised by tax agents:

Pay Your Expenses in Advance

If any business has taken a loan and any interest has accrued on this loan, then this is potentially deductible, assuming the Business Accounts for tax on the accrual basis. In a similar manner, a tax agent negotiates with the finance provider to make upfront interests and repayments.

Review Your Balance Sheets

Another fact of business is that some amounts owed are not likely to ever be paid. End of year planning is the best time of year to re-consider these amounts, and decide if there are any legitimate bad debts, and therefore is written off and is moved into a tax deduction column. At the end of the year, a business pays back through outstanding invoices to find out the potential bad debt candidates. However, the tax agents have more rules regarding the bad debt deductions.

Shuffle the Capital Gains

Capital losses are the offset against, and therefore reduce, taxable capital gains that a business embarks on selling other assets. So, if some of the business assets realize a capital loss, then, try to crystallize these losses at the end of the year. However, if the sale produces a capital gain, delay crystallizing this gain until the next income years, so that a business can have a full financial year to put in place the options, to offset that gain with the capital losses. It may be worthy for every business to sell an under-performing asset and realize a loss, as this suits the business capital gains tax circumstances. Tax agents have stated that ‘Capital Gain Tax’ is an event that will help in the business planning if it sells an asset where settlement and payment take place in the current fiscal year. Stock Valued Vary Across the Financial Year Taking into account the changed value of your trading stock over an income year can affect the resulting business taxable income. But, as the cost, market selling, or replacement value has arrived, its end result allows the business to bring forward the deductions or alternatively increase the taxable income if the business has sufficient deductions in the preceding year. Tax Agents in Burwood keep a record that each item of trading stock can be valued differently for the tax purposes.

Appreciate Depreciation

Getting a tax deduction for the wear and tear and loss of value on business assets are used to derive assessable income as a stalwart of the business tax regime. So, a tax agent reviews the business schedule of depreciation which is always wise. A number of opportunities may be discovered, including the ability to write-off and scrap a number of redundant assets, or allocating assets to a low-value pool. This is important for current and the next tax year, as the $20,000 instant asset write-off has been extended to 30 June 2018.

Benefit from Staff Bonuses

Tax Agents has suggested that businesses that account for tax on accrual basis must claim a tax deduction for an expense in the year in which the business has devoted to liability. If the business has made any commitment to the employees for the end-year bonuses, the accrued expenses can be claimed as a tax deduction; even though, it is physically paid in the next financial year. For a business to claim a deduction for an employee bonus without physically paying the money, it must commit to the payment of a specific amount before the end of the financial year. Hence, to know more about tax planning strategies adopted by Tax agents in Burwood, you can visit Opulent Accountants website. You can contact us for more insights!

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Moumita Ghosh
Moumita Ghosh
2020-11-18
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We've been meeting Dayan for years now and he is great with his advice and is very knowledgeable and pragmatic. We recently used his services to get the home loan for our house and he and his team went above and beyond to get us the best possible deal. Ishara in his team was super communicative and responsive in following through and made the process very easy for us. Highly recommend them!
Cara Neela
Cara Neela
2020-10-24
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Dayan and Hasi are wonderful, wouldn’t hesitate to recommend them! They went through all with a fine tooth comb to ensure all was correct. Thanks to you both and the Opulent team!
Jason Barry
Jason Barry
2020-09-29
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I was looking for a different accountant and was recommended to Opulent Accountants. I have been blown away with there service. I wish I moved accountant sooner. Platinum Plumbing Enterprises P/L
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Afshin Koohestani
2020-09-10
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Uditha Illeperuma
Uditha Illeperuma
2020-09-08
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Opulent Finance gave professional advice for my unique home loan requirement. They respond quickly with the proper information. The process was smooth and I felt comfortable to deal with the team. The team is friendly and professional to deal with. Highly recommended for any one looking for finance.
Dinesh Fernando
Dinesh Fernando
2020-09-03
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Very happy with the service provided in getting my tax returns done. Mr. Dayan is very helpful and professional and has extensive knowledge in his field of expertise. Highly recommend if you are looking for a hassle free and prompt service.
Ronald Turner
Ronald Turner
2020-07-16
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Opulent were absolutely fantastic to deal with, they are competitively priced and incredibly proactive and friendly. For me I have been much better off using their fantastic services as opposed to doing tax returns myself. Sum was amazing, incredibly knowledgable and super friendlyI'll certainly be back with Opulent next year
Milinda Wickramasinghe
Milinda Wickramasinghe
2020-07-05
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Opulent team has been fantastic and it has been truly a pleasure dealing with the team for more than 10 years. Dayan and Ishara have gone above and beyond to assist and communicated with me even when I was overseas. Excellent service has being provided in a professional and timely manner. I would highly recommend the team.
Chami Ranaweera
Chami Ranaweera
2020-04-28
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I have been working with Dayan last 9 years. All of my loans, refinance and tax are done through Opulent.Dayan and his team including Ishara are very helpful and easy to deal.
Edmund Lobo
Edmund Lobo
2019-12-02
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We were new entrants to the cattle farming scene. All the rules and regulations surrounding primary production can be very confusing. The team at Opulent Accountants walked us through all the steps, set up the necessary ABNs and Company / Trust accounts, filed the related pending BAS and Tax returns, and is currently keeping us up-to-date with all ATO related transactions. We recommend them highly to all.