Ross’ Post

𝐈 𝐡𝐞𝐚𝐫𝐝 𝐈 𝐜𝐨𝐮𝐥𝐝 𝐝𝐞𝐝𝐮𝐜𝐭 𝐦𝐲 𝐞𝐪𝐮𝐢𝐩𝐦𝐞𝐧𝐭 𝐜𝐨𝐬𝐭𝐬, 𝐛𝐮𝐭 𝐢𝐬 𝐢𝐭 𝐫𝐞𝐚𝐥𝐥𝐲 𝐭𝐡𝐚𝐭 𝐬𝐭𝐫𝐚𝐢𝐠𝐡𝐭𝐟𝐨𝐫𝐰𝐚𝐫𝐝?⁣ ⁣ If you’re a contractor in the construction business, this question might sound familiar. Navigating the tax landscape, especially when it comes to business expenses and the Section 179 deduction, is no small task. Let’s clear the air and simplify what these rules mean for you.⁣ ⁣ Imagine this: It’s tax season, and you’re scrambling through your records—equipment receipts, invoices, job-related expenses—trying to figure out what qualifies as a deduction. You’ve heard about the Section 179 deduction but aren’t sure how or if you can take advantage of it. ⁣ ⁣ The fear of missing out on legitimate deductions or making a costly error adds unnecessary stress.⁣ ⁣ It’s valid to worry about missing out on potential savings or, worse, making an error that triggers an audit. The rules around Section 179, which allow you to deduct the full cost of certain equipment and property in the year it’s placed into service, can be tricky. You need to know exactly what qualifies and how to apply it correctly.⁣ ⁣ This is where I step in as a business consultant with specialized expertise in tax matters for construction contractors. Working with someone who understands your industry’s unique challenges can make all the difference. ⁣ ⁣ One client of mine, a contractor who spent over $50,000 on new equipment in a year, was unsure how to report it. After working with me, he used the Section 179 deduction correctly and saved thousands in taxes, allowing him to reinvest in his business and bid on more projects. It was a game-changer for him.⁣ ⁣ If you’re tired of feeling unsure about your tax situation, it’s time to seek expert help tailored to your business. Don’t let uncertainty hold you back from maximizing your hard-earned income.⁣ ⁣ Share this post with a fellow contractor who could use this advice. Schedule a call with me: https://bit.ly/3Ykow29⁣

Calling all construction businesses! Did you know that expenses related to continuing education can be deducted from your taxes? Or that the payments you make to subcontractors could be tax-deductible? #QuickBooksSolutionProvider, Knowify, explains four tax deductions construction business owners often overlook. By taking advantage of these deductions, you can lessen your tax load and reinvest those savings back into your business. Don't miss out on this chance to save money and propel your growth. https://bit.ly/3KIqSl8

Small business instant asset write-off: finally, some certainty! In her July monthly AccountantsDaily column, Robyn Jacobson, CTA, discusses the details around the enabling legislation finally becoming law so that small businesses can now claim the $20,000 instant asset write-off for 2023–24 with certainty. Robyn covers where we’ve landed, what’s still to be legislated and other tax implications of using the write-off, with the key points as follows: ➡️ The $20,000 threshold applies on a per-asset basis. ➡️ The asset must be first used or installed ready for use for a taxable purpose during 2023–24, not merely purchased or ordered. ➡️ The ATO will work with taxpayers who may have claimed incorrectly or made a mistake despite their best endeavours to do the right thing. ➡️ The amending Bill that gives effect to the proposed $20,000 threshold for 2024–25 is currently before the Parliament. ➡️ The Tax Institute continues to advocate for a permanent increased small business IAWO. ➡️ When an asset is sold for which a full deduction was claimed under the IAWO, the entity is assessed on the taxable part of the asset’s termination value (usually the sale price less GST). Read the full article: https://lnkd.in/gXET-iz7 #TheTaxInstitute #TTI #tax #thehomeoftax #jointhetaxconversation #TaxPolicyandAdvocacy #IAWO #InstantAssetWriteOff

𝗦𝗼𝗺𝗲 𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝘆 𝗼𝗻 𝘁𝗵𝗲 𝘀𝗺𝗮𝗹𝗹 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗶𝗻𝘀𝘁𝗮𝗻𝘁 𝗮𝘀𝘀𝗲𝘁 𝘄𝗿𝗶𝘁𝗲-𝗼𝗳𝗳 Finally, the enabling legislation has become law so small businesses can now claim the $20,000 instant asset write-off (IAWO) for 2023–24 with certainty. In my July monthly AccountantsDaily column, I explain where we’ve landed, what’s still to be legislated and other tax implications of using the write-off. Key points: 📌 The $20,000 threshold applies on a per-asset basis. 📌 The asset must be first used or installed ready for use for a taxable purpose during 2023–24, not merely purchased or ordered. 📌 The ATO will work with taxpayers who may have claimed incorrectly or made a mistake despite their best endeavours to do the right thing. 📌 The amending Bill that gives effect to the proposed $20,000 threshold for 2024–25 is currently before the Parliament. 📌 The Tax Institute continues to advocate for a permanent increased small business IAWO. 📌 When an asset is sold for which a full deduction was claimed under the IAWO, the entity is assessed on the taxable part of the asset’s termination value (usually the sale price less GST). ❝Unfortunately, due to the extensive delays in legislating the measure, businesses had mere days to act on the new law. In effect, the measure serves to clarify the treatment of assets already acquired during 2023–24, rather than incentivise businesses to invest in eligible plant and equipment.❞ Feel free to share your thoughts and comments below 👇 #tax #accountants #thetaxinstitute #tti #robyntax Julie Abdalla

This week I advised a client not to save tax... I met with a construction client this week, in advance of their year end, to discuss potential tax savings before it was too late. They have had a great year, have good profits and cash reserves. Naturally they were concerned about their corporation tax liability. We discussed assets they could purchase, that they need for projects next year. Purchasing these before the year end will save corporation tax sooner, and they need the assets anyway. We also discussed investing into a pension scheme, that could later purchase commercial property as an investment. As keen as they were, between us we decided it was best not to do this, and pay a higher tax bill. They have several exciting projects next year, that need to be funded. By using their own cash reserves and not relying on external finance, they will save a fair bit in interest. Also, by having the cash reserves they are able to purchase in bulk, and put large deposits down with their suppliers. Suppliers are giving them discounts between 10-15% for doing this. This extra margin will help generate good profits next year and increase cash reserves. When they come to invest in the pension later on, it won't restrict their cash flow, or their ability to keep their projects going. Having the cash will also mean they can run their business with less stress. To save £25,000 in corporation tax, you need to spend £100,000. That £100,000 may be better spent elsewhere. Not everything is about saving tax when you speak to an accountant. It is important to take the whole business into account, future projections and where you want to take the business too. #construction #tax #accountant #growth

Keeping track of business expenses is crucial for any company. Want to know which costs are tax-deductible and which aren’t? Check out our latest article for a straightforward guide to expenses that can help reduce your tax bill. Read more here: https://lnkd.in/gcGMwrFd #DiproseMiller #BusinessAccounting #AccountingTips #FinancialPlanning #BusinessFinance

How to Maximize Tax Savings Through Trust Structures: A Guide for Business Owners

Small Business Owners: Taxes are due on April 15th 2024! No, you don't need to file an extension. Yes you can get financing to pay your taxes. Yes, you have enough time to apply, get approved and receive money to pay your taxes here: https://lnkd.in/eZi_6x5e #Taxes #2024TaxDeadline #BusinessFinancing #SmallBusiness #Entrepreneurs

📈📝 Unlock the potential of tax deductions to boost your business's profitability and efficiency. This comprehensive guide for entrepreneurs delves into the crucial aspects of business tax deductions, helping you understand what truly matters when it comes to financial planning. Discover how to maximise your savings and strategically manage your tax liabilities for long-term success. https://lnkd.in/e9Kdv8eT

Understanding depreciation rules at this point in the year is a strategy that can significantly impact your bottom line and help set up your 2025 tax filing to be as advantageous as possible.