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. 

Contact the experts at Bush & Campbell on 02 6938 4600 for assistance with implementing these tax tips.

Cristy Houghton

Embarketing, 48 Johnston Street, Wagga Wagga, NSW, 2650

Cristy's unique career has taken her from country NSW to the city lights of Clarendon Street South Melbourne and back again. With an early career in radio as a copywriter and creative strategist, she is now a Jill of all trades as a graphic designer, website builder, blog writer, video editor, social media manager, marketing strategist and more. 

In fact, give her any task and this chick will figure out how to do it! Go on, we dare you!

No, really, we DARE you!!

Cristy has won two Australian Commercial Radio Awards (ACRAs) for Best Ad and Best Sales Promotion, and even has an 'Employee of the Year' certificate with her name on it.

Cristy and her husband James have traveled extensively through Russia, China and South East Asia, and have two fur-babies, Sooty (cat) and Panda (puppy). Cristy loves drinking coffee, meeting people to drink coffee, coffee tasting and coffee flavoured cocktails. She also enjoys road trips, TED Talks and watching cat videos on youtube.