Year-end Tax Planning – Individuals
A checklist of a few items to examine further, before year-end.
- Are there some small transactions that collectively might help either reduce your income to a lower tax bracket or reduce the adjusted taxable income to enable access to offsets or liability to surcharges?
- Ensuring personal superannuation contributions are received and cleared by 30th June.
- Are there any capital gains that might be reduced by converting an unrealised capital loss into a realised capital loss?
- Are there any expenses that may be paid shortly that can be paid prior to year end? Repairs to a rental property are a typical example.
- Donations paid in June have slightly better tax impact than donations paid in July and remember philanthropic arrangements are akin to deciding how your taxes are spent.
- Do you have any Higher Education Loan Programme or similar debts that could be reduced with a discount, rather than a compulsory deduction on the tax return?
- Remember the business loss rules now include $250,000 “drop dead” test. Whilst you might pass all the other tests, if the adjusted taxable income is more than $250,000 the business loss will quarantined.
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