What do you normally do to work down your company tax? My accountant suggested a new laptop or similar (so the asset can be written off), but I don't really 'need' one. A new phone; that's probably due.
But by my reckoning, it's still a waste of money if you don't really need new stuff. Do you agree? Am I missing something?
Most companies are small businesses and base rate entities, if so the tax rate is 27.5%
So your accountant is advising you to buy stuff you don't need so that you can claim it on tax?
out of curiosity why don't tradees buy utes then claim it on tax and sell it to make few grand profit? Do anyone do this or does ATO crack them down
well, she was more saying 'if you need something, nows the time to get it', but yeah there is this tone of 'buy stuff to avoid tax!' from other business owners I know that I'm just trying to get my head around.
You pay for a loss or gain on the sale.
If a tradie buys the ute and puts it through their business. When they sell the ute, the sale goes back through their accounts as a sale.
People do what you described but generally small items.
Vehicles are registered and have stamp duty when transfered so that specific example doesn't work.
Buy and resell on Gumtree for cash.
No point paying $1 for something you don't need just to save $0.30. Instead of getting something you don't need, you can bring forward future expenses/maintenance to June instead of the next few months. Stuff like maintenance costs, stationery, etc.
hmm. Just a consulting business, so pretty much just salary, sub-contractors and car expenses :(
yeah it's pretty much like buying a house to invest with the aim to save money on negative gearing…
Errrr negative gearing is amazing if done properly, that's why over a million australians do it each year. Plus no government in their right mind would ever mess with it because you switch off negative gearing, expect to lose a lot of votes.
The goal is to have a negative geared property to offset your personal tax whilst property price appreciates. Remember that a lot of the loss from owning an investment property are paper losses eg. house depreciation
If that is the best your accountant can suggest in order to reduce your company tax, then change accountants!!
no, no, other stuff too, such as maximising super contribution. She's fine.
High yield car? Consultants need to look good.
Lol, just picked up a Forester. I lack the showoff gene. But yeah, that has certainly helped the bill.
I wouldn't be "running out to buy a new laptop" … but, if you're getting close to buying one (or any other piece of equipment) it's likely beneficial to do it now rather than later.
Yeah that's where I'm at. Have to get up to speed on mobiles.
company tax is 30%, so buying something for $1k is effectively buying something for $1k-30% = $700.