MASTERCLASS Investment – 3 more Top Tips for End of Financial Year SMSF planning

MASTERCLASS Investment – 3 more Top Tips for End of Financial Year SMSF planning

Investment – 3 more Top Tips for End of Financial Year SMSF planning

Preparing for the end of year is an important stage as an investor. We wrote 3 tips last week.

Here are another 3 tips for end of year investment strategies to set up well for the end of financial year.

4. Bring-forward deductions

Bringing forward deductions is a great way to reduce your tax liability for the current financial year. Examples of this are investment subscriptions, pre-paying interest payments on investment loans or paying an annual premium payment for your Income Protection cover.

You could also consider disposing of investments that have experienced a capital loss and do not fit in your portfolio anymore. This loss can be used to offset any capital gains you have realised this financial year.

5. Defer taxable income

If possible, deferring income until after the 1st of July can be a useful strategy. This could involve delaying the sale of an asset or considering when fixed term investments will mature.

6. Property Investments

  • Interest that is part private – best to have a separate loan for the investment.
  • Conveyancing and purchase costs are not deductible, they are part of the cost base for capital gains tax purposes.
  • Do minor repairs that can be immediately written off before they become major and possible capital repairs and need to be depreciated – eg we had a tap that come loose at the base, and a small water leak had developed under the sink. The water travelled to the downstairs study, and took weeks to show by a small stain in the roof plaster in the study. The tenant took weeks to tell us. We thought it was the shower in the ensuite directly above, but the plumber later found it was the powder room sink tap! Renovating the shower would costs several thousand – which was considered capital expense, fixing the tap and roof plaster was directly deductable.
  • Rental property visit costs – are no-longer claimable from 1/7/17 tax years onwards.
  • Delay large item purchasing, as they are generally depreciated, not immediately deductible – new oven, hot water systems etc.

Thinking you need help with your SMSF administration and accounting and timely lodging/compliance?

See our Services page. Or call us 0407 361 596

What are your Thoughts? Comment below!

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About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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