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Assistance With Investing
Asset Protection
If you go to all the effort of purchasing an investment, then put some effort in protecting it. Great thought needs to be put into who should own various investments to protect them. Keep investments away from where your risk is.
Structuring
Different types of investments require different structures to minimise income tax each year and Capital Gains Tax when you sell. Correct structuring also gives you flexibility both to sell an investment and to use it as security.
Capital Gains Tax Minimisation
You know what the investment purchase and sale details are but what about every other factor in calculating Capital Gains Tax. There are many considerations to include to ensure you pay the least tax possible. This includes being aware of the main residence exemption and holding eligible assets for at least 12 months to access the 50 per cent capital gains tax discount for individuals.
Foreign Income and Investments
As an Australian resident you are required to report income and gains from overseas investments. If you have paid tax overseas, then you may be eligible for a foreign income tax credit.
Investment Deductions
You can claim tax deductions for expenses incurred in earning investment income. Deductions may include account fees, interest on borrowings, management fees and research subscription costs.
Estate Planning
We can help you structure your assets so that they will pass to your beneficiaries in the fastest, easiest way possible with the least amount of taxes and duties payable.
Cashflow Consulting
Statutory reports are only important for lodgement obligations and tax, but actual profitability and cash flow are more critical to the success of your business. Remember, cash is king.
Minimising annual income tax
We hold annual tax planning meetings with all clients that expect big profits. This is usually in March so that you have 3 months to take any necessary steps to reduce income tax at 30 June.
Using debt effectively
Borrowing is ok as long as the funds are used for a good purpose that gives you a return on investment. When obtaining finance, you need advice on where that debt should be located and how it should be repaid.
Hot Topics
Rental Properties & 2nd Hand Assets
Did you know that since 1 July 2017, you can’t claim the decline in value of second-hand depreciating assets. This includes things that were existing in:
- A property when you purchased it
- Your private residence that you later rented out
AirBNB Your Home
Did you know that if you use part of your home for AirBNB, then that part of your home become taxable for Capital Gains Tax purposes.
No more travel deductions for rental properties
Did you know that residential landlords can no longer claim travel deductions relating to inspecting, maintaining or collecting rent for a rental property.
Cryptocurrency trading profits
Did you know that whenever you transfer a crypto token back into fiat currency that is considered a Capital Gains Tax event. A CGT event also occurs when you swap or transfer one token for another. The income tax treatment of Non-Fungible Tokens (NFTs) follows the same general principles as cryptocurrencies.
Exchange Traded Funds (ETF’s)
Did you know that your distributions from an ETF may include various components both income and capital. Your annual tax statement will detail your various income components.
Foreign resident capital gain withholding
Did you know that if you are a foreign resident and sell an Australian property with a contract price over $750,000, the buyer is required to withhold 12.5% tax at settlement at pay this directly to the ATO. You can then lodge an income tax return and claim this amount as a credit and potentially receive a refund is your capital gain is minimised.
