Bad debt deductions
A debt to a business that is unpaid and deemed to be a “bad” debt can be an allowable deduction as long as it was included as assessable income in the present or even a previous income year, and that it is written off as “uncollectable” in the same year that a deduction is claimed. […]
Working from home
In general terms, the Tax Officetakes the view that expenditure associated with a person’s place of residenceis more likely to be of a private nature. However if you produce assessable income at home, or some of it, and you incur expenses from using that home as your “office” or “workshop”, you will generally be in […]
Food and GST
There may be several positives to come out of the government’s push for tax reform, with the various submissions to its Re:think initiative from industry and the wider taxpaying community. But certainly one of these positive outcomes is that Australian taxpayers have been talking and thinking about tax reform with increased enthusiasm. One area of tax legislation, […]
Finance costs for rentals
Interest can be claimed for the cost of funds borrowed to purchase a rental property and to meet maintenance costs or running expenses while the rental property is being let (or is available to be let) under a commercial arrangement to generate assessable income. In these circumstances the interest paid is deductible even if it […]
Basics of Dividends
Mum and dad investors in receipt of dividends from their share portfolio often benefit from investing in blue chip shares because they usually have franking credits attached. As a general rule, an Australian resident shareholder is assessed for tax on dividends received plus any franking credits attached to those dividends. The shareholder is assessed on […]
Initial repairs
The ATO frequently re-focuses its attention on claims that investment property owners make for repairs to rental residences that it deems to in fact be “improvements”. The scenario where investment properties have work done on them often happens shortly after the property is purchased, and has led to the term “initial repair” being commonly used […]
Luxury Car Tax
You can judge whether a car is luxury or not, according to the government, if it costs more than $64,132 for 2016-17. It’s not an over-the-top s price tag if you’re considering true luxury, but it’s enough to cop an extra tax. So what do I need to know about the luxury car tax? The […]
Understanding Div 7A
Division 7A (of Part III) of the 1936 Tax Act aims to stop shareholders and their associates taking money or benefits out of companies tax free. The rules impact at times when clients do not expect them to, such as in relation to company guarantees and loans from trusts. Division 7A can also apply in […]
Is the ATO coming?
An organisation that doesn’t go through the formal winding-up process might find they are served with a wind-up notice from the ATO, after a period of inactivity is interpreted as a non-payment of taxes or other obligations. Does this happen often? At the moment, the submission of wind-up applications is something the ATO is ramping […]
Debt Consolidation
Consolidating your debts can be a huge help when it comes to maintaining control of your financial situation, and knowing when you’re in trouble is key to avoiding large debts and even bankruptcy. What is debt consolidation? Debt is part of any business. And while sometimes it’s easy to manage, other times having multiple debts […]
