strategy five general strategies tax planning strategies for 2015
TRANSCRIPT
General Tax Planning Strategies
Key Items that mean $ in your pocket
Tax PlanningStrategies for 2015
How would you like to legally reduce your tax by $500 or $1,000 or $5,000 or more?
Here’s how you can do it…
Tax PlanningStrategies for 2015
The Strategy behind Tax Planning
The tax you pay depends on your taxable income (all assessable income less allowable tax deductions), and the tax rates that apply to that income. Therefore, your tax is reduced if you: 1. Reduce your income, or
2. Increase your tax deductions
Tax PlanningStrategies for 2015
Let me illustrate…
Buy tax deductible items you need in June, not after.
This brings the tax deduction into this year, not the next.
Tax PlanningStrategies for 2015
For Example…
Expense: Subscriptions or some consumables like printing and stationery for your business. If you knew you’re going to spend $1,000 on it, instead of spending it in July, spend it in June so at least you can get the tax deduction in June.
Similarly with income, if you can defer invoicing any invoices to July, instead of invoicing in June, invoice them in July. That pushes your income out to next year so it reduces the amount that you’d be taxed on.
Tax PlanningStrategies for 2015
WARNING!Don't fall into the trap of buying something simply to get the tax deduction for it.
If your tax rate (including Medicare Levy) is say 34.5%, you would only get 34.5% of the purchase price back as a tax refund (or reduced tax payable) from a tax deductible item.
You DON'T get 100% of the amount that you spend back as a tax refund (or reduced tax payable). But if you need it – buy it BEFORE 30 June to get the deduction.
Tax PlanningStrategies for 2015
Tax Planning Guides
Review these two tax planning deduction guides . . .
• 12 Ways to Reduce your Tax – Individuals
• 2015 Business Tax Planning Strategies
Visit [website address] to review
Tax PlanningStrategies for 2015