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Leon241
02-06-2012, 07:33 PM
Ok, approaching my first end of financial year's trading. I won't be posting a profit this year, but was wondering if it's better to buy stuff you need before the end of the financial year? I need a few things, but was hoping to hold off until I can afford them better.

I do have an accountant, I could ring her I suppose, but just need an excuse to buy more toys!???

ian
02-06-2012, 07:50 PM
if your not making a profit no point in buying because no profit =no tax so no deduction so no point,otherwise i always try to buy consumables before the end of the year
ie: brushcutter line, airfilters, mowerblades ,safety glasses, and gloves etc.

happymowin
02-06-2012, 08:12 PM
best thing you could do is ask your accountant.

failing that id agree with ian, if theres no profit this year, best to buy un needed things come july onwards so if youre making a profit next year, they come off that.


that reminds me ive got to get the ute and trailer serviced, buy a stack of new uniforms and consumables this month.

cheers


:)

seliment
02-06-2012, 08:31 PM
Isn't it better to wait until 2012/13 tax year unless you have lots of profits to get rid of?

Reasoning: wasn't there a budget announcement that allows any item of equipment that is purchased and costs $5k or less to be depreciated 100% in the tax year.

Chris B
02-06-2012, 08:49 PM
you are going to be building your income so better off with the deductions next financial year anyway where you will be paying more tax.

Tender Lovin Lawn&Garden
02-06-2012, 10:39 PM
I dont think i need to repaet it but yeah if no profit no benifit in buying it unless you had a job as well this financial year inwhich case you can start taking it off that if you go into negative. Other wise yes now is a good time if your looking at paying high rate of tax you can spend some to maybe put you in a lower tax bracket.

glassngrass
03-06-2012, 08:59 PM
Ok, approaching my first end of financial year's trading. I won't be posting a profit this year, but was wondering if it's better to buy stuff you need before the end of the financial year? I need a few things, but was hoping to hold off until I can afford them better.

I do have an accountant, I could ring her I suppose, but just need an excuse to buy more toys!???

If you aren't making a taxable income, then reducing income further won't lessen you tax debt....

NEW tax rules on depreciation come out in the new financial year - including instant write-off of purchases up to $6,500 (for those on simplified accounting)
I have just returned from a two-day Payroll/GST workshop this weekend hosted by the Institute of Certified Bookkeepers - Over the neext week or two I will post a few noteworthy things that may be of interest to you in the Bookkeeping Corner thread.

cadase
03-06-2012, 11:03 PM
If you aren't making a taxable income, then reducing income further won't lessen you tax debt....

NEW tax rules on depreciation come out in the new financial year - including instant write-off of purchases up to $6,500 (for those on simplified accounting)
I have just returned from a two-day Payroll/GST workshop this weekend hosted by the Institute of Certified Bookkeepers - Over the neext week or two I will post a few noteworthy things that may be of interest to you in the Bookkeeping Corner thread.
sounds like a wild weekend :)

4 Gardens
04-06-2012, 03:23 PM
- Over the neext week or two I will post a few noteworthy things that may be of interest to you in the Bookkeeping Corner thread.

David your posts are always well appreciated...thank you in advance

imoww
04-06-2012, 04:42 PM
Hey Leon, I think in the old days, contractors always bought things on credit card prior to the end of the financial year.
Then they claimed it in their tax return. With the return, they paid the credit card.

AJD Mowing
04-06-2012, 04:57 PM
I remember when Credit cards first came out you could draw money out at the same rate of a purchase and people would get as many credit cards as possible then draw all the money out of the credit cards except for one then invest the money in the bank and use the one credit card to pay off what was owing on the others as there was a 30 day turn around. They had to have the dates on the credit cards worked out so they could rotate them.. Of corse the banks didnt take long to catch on LOL

ASTRO
04-06-2012, 09:35 PM
You should deal with your credit card as you would your mother-in-law,absolutely as the only final option left available.:laughing::laughing:
Cheers Astro.

ian
04-06-2012, 09:50 PM
You should deal with your credit card as you would your mother-in-law,absolutely as the only final option left available.:laughing::laughing:
Cheers Astro.
i was going to say i would love to but I've been told it's illegal to cut her up