End of year tax planning tips for business
The general rule is that you can claim deductions for expenses your business incurs in it’s task of generating assessable income. Many of these deductions are obvious – rent, materials, supplies and so on – but there are also some less obvious options left available just before the end of the income year, should your circumstances suit, to further reduce your enterprises tax burden for the year.
Pay tomorrow’s expense today
If your business has taken out a loan, any interest accrued but not physically paid by June 30 is potentially deductible (the crucial factor of course being that the loan was used to produce assessable income, which most business loans are) – assuming that the business accounts for tax on an accruals basis. In a similar vein, see if you can negotiate with your finance provider to make upfront interest payments – that is, they may not be “due” until after July 1, but the finance provider will accept them before then.