How much do you know about taxes? For many people, even those with significant investments, taxes can be a complete mystery. However, if you have established a portfolio, you must ensure your tax obligations are met if you want to protect your investment. If you don't have time to study the intricacies of the tax system or if doing so would detract from the time you must spend with your business, it is a good idea to bring in some tax advisors to help manage that part of your affairs. There are many tax issues where tax advisors could offer guidance. These areas could include property disposal, capital gains tax, and ABN applications. One area where their help could be especially useful is tax depreciation.
Understanding tax depreciation
Ensuring that your tax obligations are kept to a minimum is important if you want your investments to thrive. No one likes to pay more in taxes than they must, and correctly calculating tax depreciation ensures that you aren't paying more than you should. A tax depreciation report can demonstrate what tax deductions apply to your situation, but that report must be prepared by someone who has access to all the relevant data. A tax specialist will draft a tax depreciation schedule that indicates, in a way that the ATO will accept, what wear and tear has taken place in properties that you own. If the schedule is accepted, you will be allowed to class that wear and tear as a tax-deductible expense and reduce your bill.
What should you look for in a tax advisor?
With significant savings to be made, you must find the right tax advisors to prepare your tax depreciation report. The best way to locate the company you need is to look for one already involved in similar work. Can they demonstrate that they have successfully helped clients in a similar position to you? When you are considering a company, ask them not only about how they would prepare a tax depreciation report but about the many other things that they could do to lower your tax bills and restructure your finances. Their approach to depreciation is only a part of what any tax advisor can do for you. The best advice is to look for a proven track record and then talk with a potential tax advisor so that you can be sure they have a good understanding of your affairs and how they can help you.