2017 year end tax tips
Capital losses
Selling poor performing assets may enable you to bring forward a tax loss that can be offset against any capital gains made throughout the financial year.
Write-off bad debts
To obtain a bad debt deduction, a debt must not be merely doubtful and must be written off as bad during the year of income in which the deduction is claimed. The debt must have been previously included as assessable income.
Trust resolutions
Trustees are required to make trust resolutions before 30 June in relation to how trust income will be distributed among beneficiaries.
Prepaid expenses
For small businesses, you can bring forward operating expenses, such as rent, insurance, repairs and office supplies that cover a period of no more than 12 months.
Superannuation strategies
Review your super strategies before year end to maximise your contribution caps, roll-over capital gains and review your eligibility for the spouse contribution tax offset and government co-contributions.
Write-off obsolete inventory
Slow moving, damaged and obsolete stock must be written off prior to 30 June to claim a tax deduction.
Claim self-education expenses
Self-education expenses, such as course fees, textbooks, stationery, etc. are tax deductible if your study is work-related or if you receive a taxable bonded scholarship.
Small business CGT concessions
Capital gains tax (CGT) concessions may apply to small businesses when an active asset is disposed of. There are four types of concessions; small businesses can apply as many concessions they are entitled to until the capital gain is reduced to nil.
Employer super contributions
Employers must pay all superannuation guarantee contributions for employees before 30 June to receive a tax deduction in 2017.
PAYG income tax instalments
Small businesses should review their PAYG income tax instalments and notify the ATO if expected profit will be higher or lower than previous financial years.
Home office expenses
Individuals operating businesses from home may be entitled to claim deductions for a number of expenses including room utilities, business phone costs, occupancy, and motor vehicle expenses.
CGT roll-over relief
After 1 July 2016, small business owners have greater flexibility in changing the legal structure of their business. Small businesses can defer gains or losses that would otherwise be realised when business assets are transferred from one entity to another.