Know what you can and can’t claim as an expense
Knowing when income is gained and expenses incurred can have a significant impact on your taxable income for the year. Haven is well-versed on what expenses you can claim – we can help to make sure you’re correctly recording income and expenditure in the appropriate year.
If you own a rental property, the determination of whether expenditure is repair/maintenance or capital in nature is an important one to make. There is a thorough step-by-step process involved in identifying the asset, and then determining the nature of the expense. Haven can talk you through these new guidelines and what they mean for your rental property.
Check when your income needs to be recognised
Did you know you can recognize some income on a cash basis? Other income needs to be recognized on an accrual basis, where income is deemed to have been gained once the services have been performed and businesses need to pay tax accordingly.
Review your accounts receivable for bad debts
An important step in your year-end processes should be the thorough review of accounts receivable balances to determine which of these are no longer likely to be collected. These can then be written off as a bad debt and a deduction can be claimed.
Check your imputation credit balance
If your imputation credit account is in debit at 31 March, you’ll need to pay further income tax and will be charged an imputation penalty tax. Get in touch with Haven today for assistance on how to clear any imputation account debits.
Understand your Government Tax Relief options
There are a few options the Government has put in place for tax relief, including the reintroduction of depreciation on commercial buildings, the temporary loss carry-back scheme, and the employee reimbursement of $400 plus $20 per week tax free to cover costs associated with home office and working from home during COVID. If you’d like to know more about these initiatives and what they mean for you, just give us a call!
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