Impact Taxation and Financial Services offer a complete services for your tax return in Bankstown. The local team of qualified and experienced accountants will help you with calculating your tax to claim every deductions you are entitled to, ensuring that you maximise your refund. The service is fast, efficient, and affordable. We are open six days a week for your convenience.
Impact Taxation and Financial Services are a trusted tax agent helping individuals and businesses in the Regents Park area with all their Tax and Accounting needs.
We offer individuals and businesses the support they need to ensure accuracy and compliance with all necessary regulations. Offering a range of services including tax returns, financial statements, bookkeeping, payroll processing and more, these services provide customers with peace of mind that their taxes are being handled correctly.
Regents Park is a vibrant business hub in New South Wales, Australia. Located locally, Impact Taxation and Financial services provide valuable expertise and guidance in navigating the complex tax landscape. We possess in-depth knowledge of Australian tax laws, regulations, and requirements and stay updated with the latest changes and developments in tax legislation, ensuring our clients’ compliance while maximizing their tax benefits and minimizing liabilities.
As tax accountants near Regents Park we can offer a range of services, including tax planning, preparation, and filing of tax returns, both for individuals and businesses. We can provide advice on optimizing deductions, credits, and exemptions to help clients legally reduce your tax burdens. We may also assist in resolving tax-related issues, dealing with the Australian Taxation Office (ATO), and ensuring proper record-keeping for future audits or inquiries.
Our professional staff possess strong analytical skills, attention to detail, and a thorough understanding of financial concepts. Impact can offer personalized tax strategies tailored to our clients’ unique circumstances, helping you achieve your financial goals while maintaining compliance with tax laws.
Whether you are an individual seeking assistance with your personal tax return or a business owner requiring comprehensive tax planning and compliance services, Impact Taxation and Financial Services near Regents Park can provide valuable expertise and support to ensure your tax affairs are managed efficiently and effectively.
Our Tax planning strategies are a critical tool for managing your financial health. It can help you maximize deductions, reduce the amount of taxes owed, and avoid costly penalties and interest charges.
Impact Taxations Wealth planning is an essential service for those looking to secure their financial future. We offer customers peace of mind, financial security, and the knowledge that their goals will be met in the years ahead.
We are well aware of the importance of managing one's financial resources well, which is why we'll do everything in our power to handle your income taxes accurately and save you money while giving you peace of mind.
Impact Taxation and Financial Services provides comprehensive tax return services to fulfil all your taxation requirements. Our team comprises skilled and seasoned accountants who are dedicated to assisting you in accessing all eligible deductions, guaranteeing optimal returns on your taxes. Our services are characterized by promptness, efficiency, and affordability. For your convenience, we operate six days a week, ensuring that your tax needs are met conveniently and effectively.
Impact Taxation and Financial Services Pty. Ltd. is a CPA Practice based in the Bankstown area. We are committed to customizing our services to meet your financial needs and help you achieve your visions and goals.
Are you considering buying a property? Do you know you could miss opportunities to save thousands, or tens of thousands of dollars if you don’t plan well before the purchase?
Below are a few key considerations:
1. How should you set up your loan structure? If you don’t have a loan offset account for a rental property, after you make extra payments directly to the loan account, you can only claim interest deduction on the remaining balance of the loan. For tax purposes, this deductible balance can’t be changed even if you redraw the overpaid amount later. A good loan structure could also help you to stabilize interest rate and speed up loan repayment by combining a standard variable loan (with an offset account) and a fix rates account.
2. Timing of renovation. You might want to do a renovation right after you have bought the rental property. But do you know for any genuine repair & maintenance included in the renovation, you can claim an outright deduction against the rental income when the property is available for rental? If the work is done before the date when the property is available for rental, you can only claim the deduction against future capital gain when the property is sold. Depend on when you are going to sell, it could take years or up to decades before you can claim the deduction.
3. How should you split ownership? You might want to share the property ownership with a family member. For tax purposes, the percentage of ownership is based on the legal title, regardless of who is paying more on the mortgage. If the property will give you a tax profit, you might want to allocate more
ownership to the low-income earner to utilize the lower marginal tax rate. If it is giving you a tax loss, you might want to allocate more ownership to the high-income earner to utilize the loss. The goal is for the family to pay minimum tax together.
4. Should you use a family trust to purchase the property? There are many pros and cons related to a family trust. The advantages include tax savings on rental profit or capital gain, asset protection and succession planning on family wealth. However, family trust can’t distribute losses. All losses are trapped in the trust to be used to offset future trust profit. Therefore, you can’t utilize any rental loss in a trust to offset other income such as salary & wages. Family trusts also attract high accounting fees on initial setup and annual fees on financial statements and tax returns. State governments also charge much higher land tax on family trusts.
5. Will the income level change in future years for different owners? You might want to forecast the possible income for different owners to understand total tax payment / savings related to the property. This could also impact on your decision making on point 3 and 4 above.
6. Understand when you can treat your property as main residence to receive an exemption on capital gains tax. When eligible, even if you have received rental income, you could still treat your rental property as main residence and receive the exemption. To be eligible, you will need to treat it as your main residence at the beginning. Please check out this ATO link: Treating former home as main residence.
7. Decide whether you need to purchase a depreciation report. Most taxpayers don’t know that the depreciation on the building will need to be added back to calculate capital gains tax when the property is sold. When the property is held for more than 12 months, after applying the capital gains tax discount of 50%, it will effectively cut the tax rate by half at the time of sales. This makes depreciation deductions desirable for high income earners. However, for low-income earners it might not be ideal to claim depreciation as a rental deduction since they could be paying more on capital gains tax in the future. It could get more complicated if the property is under joint ownership between high and low income earners.
8. You might want to consider Centrelink payments for future or existing owners. Most Centrelink payments are income and asset tested. Before attaching a rental property to a family member who is receiving, or plan to receive government benefits, you might want to check the testing thresholds first to see if the Centrelink payment will be impacted. This is also applicable when you are making distributions from a family trust to different family members.
9. Have you considered using your SMSF (selfmanaged super fund) to make the purchase of a rental property? There are a lot of tax saving opportunities with a SMSF since the income tax rate is only 15%. And the capital gains tax rate is effectively only 10% after factoring in the 1/3 discount. The major downside with a SMSF is normally you can’t get the money out until you retire or on compassionate grounds (SMSF does have more flexibilities compared to normal retail super fund. But the choices are still very limited). It could be expensive to set up and operate a SMSF too. There are also strict legal requirements on the trustees. Penalties on incompliance could be severe. Tax law around SMSF is very complicated too. You will need to find a good tax accountant specialized in SMSF to help you to understand the structure, also do a cost-benefit analysis before setting it up.
10. Consider internal ownership changes. For your existing rental properties, you can also consider whether you should transfer the ownership between family members, or between different business structures (this is not applicable for SMSF). You might want to do this when the income level changes with family members, or rental property changes between tax profit and loss. Before the change, you need to consider the cost of transfer including capital gains tax, stamp duty, conveyancer fees, etc. Again, a cost-benefit analysis is a must before the change.
Last but not the least, did you combine all the above strategies and compare your choices? If you haven’t yet, how would you know that you have picked the best strategy to minimize your taxes? We can help you to factor in all considerations, compare different scenarios, also present you with a Property Prepurchase Report with all our findings to help you to make a decision. Contact us today to book in a consultation with an experienced tax accountant!
IMPORTANT INFORMATION
This is general advice only and does not consider your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from your financial adviser and seek tax advice from your accountant.
Copyright © 2022 by Impact Taxation & Financial Services All Rights Reserved.
