In this Year End Strategies newsletter from S J Canny we highlight a few tax issues relevant to the majority of our clients.
We also remind clients that the current tax year ends on 30 June 2011 and any tax planning should be completed before that date.
There are some moments in life when it pays to leave things to the last minute, whether it is movie tickets or a cheap holiday deal. Dealing with financial planning or tax is not one of those times. It is in your interest to think about such issues in advance, and to talk to your family, advisors and business partners to make sure that everything is in order. Don't leave it to the last minute!
Not all business strategies can be carried out late in the day. Most good operations require preparation, research and the proper drafting of documents before they can function at the optimum level. Try and make your tax and financial planning a year round activity.
One common tip around the end of year tax time is to transfer assets from outside super into a Self-Managed Super Fund (SMSF). Those who want to grow their super funds have the option of moving Business Real Property (BRP) into a SMSF, while only attracting a small stamp duty and little or no capital gains tax.
The end of the financial year is approaching, and it is important to be prepared. This will ensure there aren't any nasty surprises and as much cash as possible can be protected.
As the end of financial year approaches, superannuation issues are some of the most important considerations that tax payers should be aware of. One such issue is the danger of super contributions exceeding the contributions cap. If the contributions exceed the cap, then it is possible to pay almost 93 per cent tax on a super contribution in penalty for the breach.
In the new financial year, many DIY super funds will try to expand the diversity of their investment strategies. Including a residential property in a fund's portfolio is beginning to be a popular choice. There are a number of rules and dangers, however, that potential investors should be aware of.
The ATO will be paying special attention to Division 7A of the Income Tax Act 1936 this year, an integrity measure that attempts to ensure that private companies cannot make tax free distributions of profits to shareholders or their associates in the form of debts forgiven, loans or payments. Make sure not to fall afoul of these measures during the end of year tax process.
Many property investors are not aware of the savings that can be made from depreciation on their purchase. Almost all properties depreciate in value in some way.
During the lead up to the end of the financial year, many DIY super fund trustees are implementing new financial strategies. Because of this, there may be times when a super fund is short of cash. Unfortunately, there are only limited circumstances in which a fund can borrow to make up for this, whether from a trustee or a bank.
End of year tax checklist and strategies.
We Are Here To Help
Make good use of us! This newsletter is merely a starting point, designed to help you identify areas that might have a significant impact on your tax planning.
Please keep us informed of your plans and consult us early for help in taking advantage of tax-saving opportunities and tax efficient investments.
