2018 Tax Planning for Individuals
With the end of financial year approaching quickly, NOW is the time to discuss with us the actions you can take before 30 June to reduce your tax and grow your wealth.
For individuals, key priorities are likely to be:
- Maximising superannuation contributions within the relevant caps
- Bringing forward tax deductible expenses
- Deferring certain types of taxable income
- Managing any capital gains
This is the first end of Financial Year since the new super reforms came into effect, so there are new contribution limits to consider, as well as new opportunities for you to grow your super and pay less tax.
Contact us today! to book your personal Tax Planning Session. This session will be tailored to your individual needs and requirements. The sooner we get started, the sooner we can help you save tax. You need to act now, to allow sufficient time to implement your tax saving strategies before the 30th June 2018.
Let’s say you made $100,000 last year and you paid $20,000 in interest on your mortgage. You can deduct $20,000 from $100,000 for a new taxable income of $80,000. This drops you from a 24% tax bracket to a 22% tax bracket, saving you money. The difference between 24% of $100,000 and 22% of $80,000 is $4,750. This is how much the mortgage interest tax deduction dropped your tax bill.
Are personal loans considered taxable income?
For the most part, no. When you receive money from loans, it’s not considered taxable income. Taxes come into play on the part of the lender and usually aren’t something that you need to worry about.
The only exception is when a loan is forgiven, or when payday loans are cancelled, the main things you need to know about payday loans is in this website, regarding how it works, and how debt is related to it. Cancellation of debt (COD) income is when your lender doesn’t require you to repay your loan’s principal or interest. Suddenly the loan becomes income simply given to you by the lender. Typically, if you receive a Form 1099-C from a lender, then you’ll have to report the amount on that form to the IRS as taxable income. You might receive this form after:
Imagine what you could do with your tax saved!
- Reduce your home loan
- Top up your Super
- Have a holiday
- Deposit for an Investment Property
- Pay for your children’s education
- Upgrade your Car
Don’t miss out!
NOW is the time to discuss with us the actions you can take before 30th June to reduce your tax and grow your wealth. You can check our tax planning courses to learn more about tax planning.