Email:  jjy@jjytax.com Call: 0422 873 683 / 03 9544 3833
 

FREQUENTLY ASKED QUESTIONS and ANSWERS

1). Can I have a free quote from you?

A: Yes. For us to give as accurate as possible service fee quote to you, it’s better for you to provide us with necessary information for our estimation.

2). Can we have a free consultation with you?

A: Yes. We can provide initial consultation to your business for free; or, any other free consultation by mutual agreement.

3). Can you set up company, Self Managed Super Fund (SMSF), trust, partnership, or sole trader business for me/us?

A: Generally Yes, but there are specific factors we would need to establish firstly before we set up for you. Just contact us for more detail if needed.

4). Deductible on non-commercial rent?

A: Landlords need to be mindful of the Tax Office's view on non-commercial rental arrangements. If you are renting a property at less than normal commercial rates, this can limit the amount of deductions to which you are entitled. The situation often arises in family situations, where one family member may rent a property to another family member and/or family business at a nominal rental. In these situations, a deduction for rental property expenses can only be claimed up to the amount of the rental income received from the arrangement. Any relevance may subject to change with the law changes. You can contact us for more detail if needed.

5). What is an individual’s current tax rate?

A: You can contact us for the latest year’s tax rates and the past years’ tax rates in detail.

6). How much can I contribute to my super as non-concessional contribution?

A: You can contact us for accurate contribution amounts in relevant tax year. The amounts may subject to change with the law changes.

7). Are there any GST Ruling (GSTR) on Margin Scheme?

A: Yes, GSTR 2009/1 and GSTR 2009/2 deal with real property transactions that involve partitioning land and applying the margin scheme for general law partnerships. Any relevance may subject to change with the law changes. You can contact us for more detail if needed.

8). Can I borrow or lend money to myself to get any tax benefit?

A: No.

9). How can I claim losses from non-commercial business activities?

A: You could only claim the losses if you satisfied at least 1 of the 4 tests. Any relevance may subject to change with the law changes. You can contact us for more detail if needed.

10). Can my business get any substantiation relief from car and travel expenses?

A: No, any car and travel expenses must be substantiated.

11). Can our business claim costs of acquiring another business?

A: No, if acquiring was a capital transaction. However, it may form part of the “cost base” for capital gains tax purposes. Or, if it was the “Blackhole expenditure”, you could claim a deduction of 20% annually. Any relevance may subject to change with the law changes. You can contact us for more detail if needed.

12). What legal expenses our business cannot claim as deduction?

A: You cannot deduct legal expenses including: defending charges of sexual harassment or racial vilification which occurred in the workplace; disputing redundancy payout or seeking to increase the amount of any redundancy payout; eviction of a tenant whose term had expired; resisting land resumption, rezoning or disputing the amount of compensation; and so on. Any relevance may subject to change with the law changes. You can contact us for more detail if needed.

13). Can I or my relative rent property to our business and claim rent as deduction?

A: Yes, but only if the amount of rent claimed were reasonable. Any relevance may subject to change with the law changes. You can contact us for more detail if needed.

14). How can we defer sale date to get any advantage?

A: Deferral of the sale to a subsequent financial year will be advantaged if the prevailing tax rates in the subsequent year are less than the current year. The disposal date for capital gains tax is normally the contract date. Where a sale is contemplated late in a financial year consider, where possible, deferring the contract until the new financial year. A few weeks deferral in contract signature could delay payment of capital gains tax by entire year. Any relevance may subject to change with the law changes. You can contact us for more detail if needed.

15). What if my question is not in your FAQ here?

A: Just contact us for more detail if needed.

 

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Disclaimer: Readers shall not rely on above FAQ without first obtaining advice from JJY Taxation Financial Group or other professionals to individual circumstances. The author and publisher expressly disclaim all liability for the results of action taken on the basis of information contained herein.

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