Business tax checklist 2017

We have put together a comprehensive business checklist to help you with your tax planning for 2017 Business Checklist 2017

If you have any questions or would like more information please contact me rose@roseguerin.com.au

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SMSF tax and audit checklist 2017

We have put together a comprehensive SMSF tax and audit checklist to help you with your tax planning for 2017 SMSF Checklist 2017

If you have any questions or would like more information please contact me rose@roseguerin.com.au

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Individual tax checklist 2017

We have put together a comprehensive checklist to help you with your tax planning for 2017 Individual Tax Checklist 2017

If you have any questions or would like more information please contact me rose@roseguerin.com.au

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Buying a business

Buying a business can often be an attractive way to get into your own business. We have put together some tips or topics you need to work through to ensure that the process of buying a business is as productive and successful as it can be for you.

Once you have a found a business what next

Finding the business you want to buy can be one of the most enjoyable steps in this process. Everything looks good from the outside and you are buoyed with enthusiasm. There are however a few things you need to discover and work through at this point;

  • Confirm that the sales are as good as the owner says they are and that the costs are accurate.
  • Are the employees happy with a new owner.
  • Are there contracts in place with customers and suppliers. Are they happy to work with a new owner.
  • Do they have a sound business model. Are there processes in place. Are these documented.
  • Can the business run without the current owner there. Is there a level of key person dependency.

Register your interest

It is important right from the start to show that you are genuine, that you have integrity and that you have a plan for the business that is attractive. Not only is the seller trying to manage the expectations of employees and suppliers, the seller usually has an emotional attachment to the business. They often want to know that it will be ‘in good hands’ once they leave.

Why is the business being sold

You need to understand early on why the business is being sold. Do your ‘due diligence’. Here is a list of areas you need to explore and understand.

Immerse yourself in the business

Talk to customers, suppliers and competitors. Ask them about the business, their relationship with the business. Ask them would they buy the business. You will be surprised by the level of detail people are happy to share. Especially if their experiences have been extremely positive or extremely poor.

Visit the business, imagine you are a customer and document your experience. Ask your friends to visit the business and ask them about their experience.

Analyse the results and market trends

Look at the financial results of the business. Ask your accountant to help you bring these numbers to life. What do they mean. What picture are they painting.

Make sure you are across industry trends. What is happening in the broader market that will impact this business.

Making an offer

At this stage you may be quite excited and eager to make an offer. Get some professional advice in terms of actually valuing the business. You want to understand where you feel you can increase profits and where you can reduce costs before you place a value on the business and therefore your first offer.

Understanding risk

Make sure you understand the level of risk with this purchase. Some of the measures of risk are;

  • Customer or client mix. Is there an over reliance on one or two of them.
  • Is there a reliance on a key supplier. Are there other suppliers that can provide the same product or service.
  • Are the assets of the business worth less than your offer price.

How to negotiate goodwill

The seller will usually feel that the goodwill within the business is worth a premium and it is fair to say that you do want to be buying a business that has a strong brand, customers that are loyal, good profits, location, great staff and on we go.

However, it is important to ask your accountant to actually quantify this. You will most likely be paying for goodwill within your purchase price. Therefore, you need to ensure it reflects true value.

Buying a franchise

If you are buying a franchise there are some specific things you need to work through, including;

  • Fees, both current and ongoing and what to you actually get for them.
  • The other franchisees, are they successful, how long have they been franchisees.
  • Legal and compliance, make sure your solicitor checks the franchise agreement.
  • Are they a successful operator, you want to see evidence of this.

Before you buy a business you need to understand what you are buying. If you have any questions please contact me at rose@roseguerin.com.au

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Is the Age Pension part of your Retirement Income Strategy?

From 1 July 2017, the qualifying age for Age Pension will increase from 65 years to 65 years and 6 months. The qualifying age will then increase by 6 months every 2 years, reaching 67 years by 1 July 2023.

The age pension may help to support you in to retirement. To qualify, you must first satisfy age and residence requirements. How much you get depends on your income, assets and other circumstances.

If you are a self-funded retiree or still working, you may be able to get a part pension.

You will face a large number of decisions regarding your retirement such as how long do you want to continue working? Do you want to stay working part time? Do you want to sell your family home to downsize? Or are you ready for a tree/sea change? Do you want to claim the age pension in part or full?

A financial advisor can help you with some of those decisions and to plan a retirement strategy that will work for you and your choices.

If you do want to claim the age pension, then you will need to submit an application. It is a lengthy process that will take excellent record keeping and patience as you work your way through the steps. Depending on your situation, the application contains close to 150 questions, covering everything from your basic contact information through to a person’s company and trust details if applicable.

You need an understanding of what you are entitled to as eligibility is based on age, residence, income and assets. The Social Security Act sets out the legislative base for the qualification and payment of the Age Pension.

For most people, the age pension is not something they even think about until they are ready to retire and even then it can appear as a large hurdle to negotiate when you are finally ready to relax and take things easier.

If you have any questions or would like to discuss your retirement strategy, please contact me rose@roseguerin.com.au

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Claiming for a home office on your tax return

If you are an employee who does part of their work from home, or if you are running a business from home, then you may be able to claim a tax deduction for the costs of your home office.

Home offices expenses you can claim as a tax deduction

You can claim a tax deduction for your laptop, desktop, phone and internet costs. Add to this office furniture, printers, air conditioning, lighting and even cleaning. Your accountant can work with you to uncover other costs specific to your situation.

You may also be able to claim a deduction on rent, insurance, interest on your mortgage and rates. Again, check with your accountant to determine the right structure for you.

How to calculate your deductions

There are a number of ways to calculate your deductions. The first is a diary method where you need to record how much time you spend using your home office for business compared to other uses it has. For example, if you are using to dining room table as an office that space may also be used for other activities such as family dinners and entertaining.

The second method is a tax office rate per hour method. Generally, it is a fixed rate of 45 cents per hour for home office expenses and depreciation of office expenses.

If you would like to know more about tax deductions please contact me at rose@roseguerin.com.au

 

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SMSF TAX AND AUDIT CHECKLIST 2016

We have put together a comprehensive SMSF tax and audit checklist to help you with your tax planning for 2016 SMSF Checklist 2016

If you have any questions or would like more information please contact me rose@roseguerin.com.au

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Business Tax Checklist 2016

We have put together a comprehensive business checklist to help you with your tax planning for 2016 Business Checklist 2016

If you have any questions or would like more information please contact me rose@roseguerin.com.au

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Individual Tax Checklist 2016

We have put together a comprehensive checklist to help you with your tax planning for 2016 Individual Tax Checklist 2016 270616

If you have any questions or would like more information please contact me rose@roseguerin.com.au

 

 

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How to claim for work clothing at tax time

The rules regarding what can be claimed as a tax deduction for work clothing can often be confusing and without the right advice you may be missing legitimate tax deductions in this area. Here we take you through what you can claim and what you can’t.

What you can claim as a tax deduction

You can claim as tax deduction if you are buying and cleaning the following;

  • Clothing that is only worn by those that do your job. Some examples are the uniform that dentists wear or a pilot’s uniform.
  • Protective clothing and footwear that your wear while doing your job. However, the items must actually provide a real level of protection. For example, those that work outdoors your sun protection clothing can be claimed.

What you can’t claim as a tax deduction

If you are buying or cleaning clothes that you have bought for work and you could also wear these clothes outside of work, then unfortunately you can’t claim these as a tax deduction.

For example, if you are an office worker you can’t claim the cost of buying and cleaning your suit, even though you may be required to wear a suit to work. The reason for this is that a suit is not specific to your occupation and it may be worn outside of your occupation.

In terms of claiming ordinary clothing, such as closed shoes, jeans or shirts as protective clothing you won’t be able to claim for these if they don’t have the protective qualities that are required for your occupation.

If you would like more information regarding how you can claim a tax deduction for work clothing then please contact me at rose@roseguerin.com.au

 

 

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