Tax Australia: Effective Reduction Strategies Explained | Loopholes Your Accountant May Use In 2020
Many Australian Tax Videos Are Discuss The Same BORING Strategies! I Have Dug Deeper Into Ways Middle To Upper Income Tax Payers May Reduce Tax (Income Tax, Captial Gains Tax "CGT" and Land Tax). 🔔 SUBSCRIBE 🡆🡆🡆 https://bit.ly/2ABxWz1
❗DISCLAIMER: https://bit.ly/2zldMJh
📞 CONTACT: https://kentcliffe.com.au
In Australia, we pay over 70% on some goods in 2020. These tax include; income tax, capital gains tax (CGT), land tax, stamp duties, excise tax, import tariff, goods and services tax (GST), payroll tax, waters rates, local council rates, utility charges and the government can even still print money!
Everyone hates paying taxes, and almost all videos I see cover the basic tax reduction strategies fo work-related deductions. The easiest way to pay less tax is to be income free- but we can't live off nothing!
I am not an accountant (CPA, CA, etc.), I am not a tax lawyer or a financial planner. But I wanted to dig into loopholes, deductions, reductions, strategies (whatever you may want to call it) to reduce, deduce or defer the tax you need to pay! In fact, it is likely this video might include some hyper bowl, so be sure to check everything and run everything past your accountant, tax lawyer or financial planner! There is not one iota of accuracy (warranty or represented) in the information contained in this video or any of my videos.
The first area of discussion is capital gains tax with respect to your primary place of residence being tax-exempt. There is a range of requirements to qualify for this, but a common misconception is that you need to live in the primary place of residence for 6 months - this is not necessarily the case! I also worked through an example where this could save a tax payer $11,000 on a $400,000 property. See this part of the ATO website for more info on this: https://bit.ly/2X6UWi4
There is a range of exemption and discounts which could be applied to capital gains tax. This might include if you hold an asset over 12 months your get a 50% reduction in the tax liability. Also, cars are exempt from capital gains tax. See this part of the ATO website for more info on this: https://bit.ly/2ZHYFnX
It is worth considering capital losses as these can be used to offset capital gains. If you made a loss on an overseas property you bought in 2001 you need to consider AUD exchange rate in 2020. See this part of the ATO website for more info on this: https://bit.ly/3c8Du0U
Do NOT click this link: https://bit.ly/2ABxWz1
When considering your tax affairs, it is worthwhile also thinking about what expenses you may bring forward and what revenue you can book in a later tax year. For information on bringing forward capital losses of shares which have been delisted from the ASX, go to delisted: https://bit.ly/2THkK2c
On the topic of shares, you need to consider the impacts of being considered a stock trader. You might be able to defer gains through accounting valuation principles. I stress this is very complex, and for more info, this Wolters Kluwrer (lawyers) has gone into may items in a range of detail: https://bit.ly/3caQGCC
Land tax is something that property investor learn to hate. You need to think about the beneficial owner when considering a property purchase. Many states aggregate (or combine) the total number of properties you own as one person (even looking through a trust). So consider your options with a spouse of buying interstate. MDK lawyers have gone into this a bit on an article: https://bit.ly/2ZLRmM2
Debt recycling is also worth considering in the right circumstances. This website goes into the topic in more detail than I have on this video: https://bit.ly/2ZHvEZx
Finally, commercial property, residential property (some) and unit trust which hold property may allow for deprecation. I explain how this works to defer and then reduce some of your tax. See this part of the ATO website for more info on this: https://bit.ly/3cb9iSM
All rights Reserved ©2020 By Realigned Pty Ltd