X Inc August Newsletter
(Noel Duffy, Estate Planning Solicitor, Murdoch Lawyers)
A company is a separate legal entity, distinct from its shareholders and is taxable in its own right. As in the case of individuals, it must be determined whether a company is a resident of Australia for tax purposes because different tax treatment is accorded to non-resident companies. Here we look at the taxation implications for resident companies only.
Note also that the public or private status of a company is important for tax purposes and this status does not depend on company law provisions. Many companies that are not private companies ...
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Categories: Accounting and Tax, Media Articles. Tags: 100% Home Loans, lo doc, low doc, low-doc-loans.
X Inc Finance August Newsletter
(Arthur Kassos, CPA)
The entrepreneur's tax offset was introduced 1 July 2005. This offset entitles eligible taxpayers to claim a maximum tax offset equal to 25% of their basic income tax liability attributable to net business income derived from a Simplified Tax System (‘STS') business.
The 2006-07 income year will be the last year the simplified tax system (STS) operates in the current form. For income years following 2006-07 you can access the individual concessions contained in the STS if your turnover is less than $2 million. You can access the simplified tax system for an income ...
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Categories: Accounting and Tax, Media Articles.
X Inc Insider
(Noel Duffy)
Special rules apply in calculating the tax payable on the income of a minor. These rules were introduced to discourage income splitting by means of the diversion of income to children, but they are not confined to situations where income splitting is involved.
Under these rules, ‘unearned income' of minors over $772 (if the minor is eligible for the low income rebate) is taxed at the highest marginal rate of tax (currently 45% plus the 1.5% Medicare levy would be charged if the minor earned an income of greater than $17,604). If the minor is not eligible ...
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Categories: Accounting and Tax, Estate Planning and Structuring, News. Tags: 100% Home Loans, Investment Loans, lo doc, low doc, low-doc-loans, Property Finance.
X Inc Insider
(Arthur Kassos, CPA)
Small business tax concessions are changing from the 1 July 2007. Under the changes, small businesses with an annual turnover of less than $2 million will be eligible to claim the concessions (96% of small businesses).
The 14 tax concessions are as follows:
Choice to account for goods and services tax (GST) on a cash basis
Choice to pay GST by instalments
Annual apportionment of GST input tax credits
Simplified trading stock rules
Simpler depreciation rules
Entrepreneurs' tax offset
CGT 15-year asset exemption
CGT 50% active asset reduction
CGT retirement exemption
CGT roll-over provisions
Fringe benefits tax car-parking concession (applies from 1 April 2007)
Pay as you go ...
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Categories: Accounting and Tax, Media Articles.
(Arthur Kassos, CPA)
Another good budget was delivered last month and it is obvious that an election is around the corner. Most people were winners, some more than others. There were tax cuts for middle income earners as well as simplification for individual tax returns and reduced compliance costs for small business.
The existing childcare tax rebate will be converted to a direct payment and looked after by Centrelink.
The dependent spouse rebate, for those who have no children but whom have a non-income earning spouse, will increase from $1,655 to $2,100.
For those who made eligible superannuation contributions in the 2005-06 tax year ...
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Categories: Accounting and Tax, News. Tags: Investment Loans, Property Finance.
(Noel Duffy - Murdoch Lawyers)
This series of articles explores how different types of entities determine the tax treatment under the income tax legislation to help you better understand how you can improve your tax planning.
Tax payable by an ordinary individual resident taxpayer is calculated as follows:
Taxable Income = Assessable Income - Deductions
Assessable income consists of income according to ordinary concepts (‘ordinary income') and other amounts which are included in assessable income under the Income Tax Assessment Act 1936 (‘ITAA 36') or the Income Tax Assessment Act 1997 (‘ITAA 97'), including net capital gains. Your assessable income will exclude any ...
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Categories: Accounting and Tax, News. Tags: 100% Home Loans, lo doc, low doc, low-doc-loans.
(Financial Review)
With the end of financial year approaching, individuals can take advantage of prepaying their interest payments to reduce this year's tax bill. Investors may claim tax for up to a year's worth of interest prepaid on an investment loan over a rental property, or for margin loans on share portfolios or managed investments. Experts warn however that this strategy may not suit all investors and that it is important to have a year long tax or investment strategy.
For an income tax calculator, go to http://www.xinc.net.au/calculators/income-tax/
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Categories: Accounting and Tax, News. Tags: Investment Loans, Property Finance.
By Arthur Kassos, CPA
With the financial year just around the corner the words on everyone's lips at the moment are superannuation and interest in advance "deductible investments". Unfortunately there are no "secrets" to reducing your tax bill at the end of the year.
You pay less tax by reducing your taxable income. This can be done by earning less or increasing your deductions. In some cases you can bring forward some of your future expenses and get deductions in this financial year. This can be done by prepaying expenses such as interest, insurance, lease payments etc. The prepayments are generally limited ...
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Categories: Accounting and Tax, News, Superannuation. Tags: Investment Loans, Property Finance.
by Arthur Kassos CPA
Coming up to the end of the financial year people always ask what can I claim against my taxable income. The golden rule is that expenses are deductible if they are "necessarily incurred" in earning your income. There have been a lot of cases on the meaning of "necessary incurred" meant I won't go into that right now. Basically however an expense is deductible if you can't earn your income with incurring that expense.
A common deduction most people claim is clothing and the cost of washing / cleaning of that clothing. In most cases however the clothing ...
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Categories: Accounting and Tax, Home Loans and Mortgages, News.
