Archives for September 2016

Why Partnerships? Facts and Foibles

Set-up Costs Partnerships can be less expensive to set up as a business structure than starting business as a sole trader, as there will likely be greater financial resources than if you operated on your own. On the flip side however, you and your partners are responsible for any debts the partnership owes, even if [Read more…]

When is refinancing loan interest deductible to a partnership?

About General Law and Tax Law Partnerships A general law partnership is formed when two or more people (and up to, but no more than, 20 people) go into business together. Partnerships are generally set up so that all partners are equally responsible for the management of the business, but each also has liability for [Read more…]

Setting up an SMSF: What you need to know

There are tempting tax incentives for Australians to save for their retirement via the superannuation system, with an array of choice between superannuation funds that can manage your savings for you, but also the do-it-yourself option of a self-managed superannuation fund (SMSF). Managing your own retirement savings however is a huge responsibility and one that should [Read more…]

Borrowed money to pay a business tax debt? Is the interest deductible?

It’s a question that the ATO has been asked very infrequently, but after the third such request it decided to issue a ruling — which still stands. It was about 1990 when the ATO was asked about the tax deductibility of interest on a loan a business may have taken out to repay a tax [Read more…]

What types of legal expenses are allowable as tax deductions?

When a legal expense is incurred in relation to the operation of a business for the purpose of producing assessable income, it is generally allowable as a deduction. Exceptions are when the legal fee is capital, domestic or private in nature, if it is specifically excluded by another section of income tax legislation, or is [Read more…]

$20000 Write Off is Only Available For Small Business, Unless …

There is an under-used gem hidden within the small business simplified depreciation rules that in some circumstances can widen the opportunity to access this valuable deduction. Everyone assumes that the $20,000 instant asset write-off is exclusive to eligible small businesses. But it is possible, under certain conditions, for individuals such as employees to be able to claim [Read more…]