The rise in tax rates is why I decided to roll over my 401k to a Roth IRA. I don’t want to be 59 and paying taxes on withdrawals from my retirement account.
Pre-tax contributions can help lower income taxes during your working years, while after-tax contributions can reduce your tax burden in retirement. Both have their advantages, but it’s also smart to save outside traditional retirement plans, such as individual investment accounts or with guidance from a financial advisor.
I completely agree. I'm in my mid-40s, getting closer to retirement, with over $2 million in non-retirement funds. I'm debt-free and hold relatively little in my retirement accounts compared to my total portfolio over the last three years. Honestly, you can't ignore the value of a good financial advisor-just make sure to do your homework and find a trustworthy fiduciary.
Rebecca Lynne Buie has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.
As a fiduciary, she’s committed to acting in her clients’ best interests. I reached out to her, shared my goals, and scheduled a session-thank you for the recommendation!
Hi Davie I need to speak to a tax professional about purchasing a property portfolio and tax structuring for both my friend the seller and I as the buyer. I’ve sent requests on your website a number of times
Am moved to Australia last month. Am a social media manager and my sales comes from Nigeria, what do I do regarding tax in this scenerio?....Also can you recommend a tax filing partner in Australia?
Great video! Do you know any accountants who are good in the small business space that you can refer? I'm new to the space and needing guidance navigating these waters 😊
Hope you don't mind the odd question. As a standard casual/temp/perm employee. Can you legally work for an employer , but instead of receive a taxed income, trade your time for things like goods or store credit etc?
As long as the advertisements are advertising your business that you conduct with that ABN, then you generally can claim these as deductions. If you're unsure however, it's best to speak to an accountant since other factors may affect what you can and can't claim.
Thanks Davie! Your first point of sole trader vs company example. I get the 25% makes sense, but doesn't this just mean the profits are kept in the company so you can access unless you distribute? In which case, you then file an individual return that could mean paying upto 45% anyway?
He answered this question in the comments on another video and it seems the answer is that if you want to use the money for personal use you have to eventually cash out at the personal tax rate. So the company in my opinion, seems to be more for growing your wealth over time, allowing you to save on tax within the company so you can reinvest that money back into the company's business activities so that bit of savings you get on tax compounds across time, so when you cash it out at the end you have compounded the profits inside the company at a faster rate than if you were a sole trader compounding the profits after paying a higher tax rate. I would like to see a video on franking credits, as I think this would help explain to people how they don't end up paying double tax on Australian dividend income. So from my understanding, if you have a 'fully-franked dividend' you get a tax credit because the company has already paid the tax on it... so the individual would be able to put that tax credit towards their tax bill and pay the difference / or get a refund depending on which tax band they fall under.
I think the idea is to use the company to pay the majority of your expenses, avoiding the need for a large salary, then paying yourself a smaller salary like 80k which will be taxed at a lower rate, although that’s fine since you’ve covered your expenses.
You want to be setting up a personal abn and also a trust preferably with your spouse/partner children or business partners. Your personal income is used to purchase assets for your personal abn therefore giving you deductions/depreciation to reclaim your personal income then any additional income you make from your business you deposit into the trust so you don't pay additional personal income tax on it then the trust can either pay x amount to each of the trustees (minimising tax by spreading it amongst multiple individuals ) but the actual funds remain in the trust and then assets can be purchase through there also providing further deductions
Great video, thank you! Im curious how art bought and displayed in a business applies to temporary full expensing or to instant assessment write off? What are the limits and pros and cons?
both are quite similar - you get to claim 100% of the artwork purchase. but pls ensure it meets the eligibility requirements: Tangible Capable of being moved Purchased with the dominant purpose of display in a business premise; and Not be trading stock.
@@DavieMach Even if you get to claim 100% of the purchase price of the artwork, effectively what you get back would be less than 100%, wouldn't it? With that in mind, it doesn't seem to make a lot of sense to spend $1 on something that doesn't produce anything, just to get ~$0.30 back (assuming the business is subject to 30% tax rate).
Can you please make a video on small business depreciation rules, such as small business pool and how they relate & differences between TFE, BBI and instant asset write off. Thanks 😀. Sometimes I get confused while working. Thanks
The guys advice is so wrong. Sure a company has a lower tax rate. It could be halved again but wont change anything. The reality is the ato require that the profits left in the small private company must be distributed to the shareholders each year, and the shareholders pay tax at personal tax rates less the tax already paid by the business (franking credit). Go see a proper accountant and ask to see the tax trail right until the cash is in your hand. Then add the fees and costs of the company structure.
Thanks for your comment. The ATO does not require the profits to be distributed. You can leave the profits in the company for future investments or lend the money out to another company without paying the personal tax rates. As a business owner, most accountants will advise not to take all the profits out into the personal name due to tax and asset protection issues. I agree go see a proper accountant, the information in this video is just a guide.
@@DavieMach you are completely incorrect, and in my case leaving retained earnings in my professsional services company is a way bigger risk than moving them to one of the shareholders
I never pay tax on cash, the gov doesnt know how much cash i get anyways haaha, aus tax you have to pay GST in my work, basically anyone who gets cash wont pay tax australia has the worse tax system
Am moved to Australia last month. Am a social media manager(sole trader) using Stripe and my sales comes from Nigeria, what do I do regarding tax in this scenerio?....Also can you recommend a tax filing partner in Australia?
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](/img/1.gif)
The rise in tax rates is why I decided to roll over my 401k to a Roth IRA. I don’t want to be 59 and paying taxes on withdrawals from my retirement account.
Pre-tax contributions can help lower income taxes during your working years, while after-tax contributions can reduce your tax burden in retirement. Both have their advantages, but it’s also smart to save outside traditional retirement plans, such as individual investment accounts or with guidance from a financial advisor.
I completely agree. I'm in my mid-40s, getting closer to retirement, with over $2 million in non-retirement funds. I'm debt-free and hold relatively little in my retirement accounts compared to my total portfolio over the last three years. Honestly, you can't ignore the value of a good financial advisor-just make sure to do your homework and find a trustworthy fiduciary.
This is the direction I want to take with my finances as I prepare for retirement. Can you recommend the advisor who helped you get ahead?
Rebecca Lynne Buie has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.
As a fiduciary, she’s committed to acting in her clients’ best interests. I reached out to her, shared my goals, and scheduled a session-thank you for the recommendation!
Great explanation. Thank you.
THE ATO MAKES ME STRESSED
LOL taxes is stressful
What should I choose as a “RUclipsr” from Australia. Pls help
Im finding no information on tax for futures traders under contract with a US Prop firm. Any leads you can give will be much appreciated. Thank you.
What happens when one pay's more then they need to in tax , do you get the difference back or tax department stays quiet about it?
Hi Davie I need to speak to a tax professional about purchasing a property portfolio and tax structuring for both my friend the seller and I as the buyer. I’ve sent requests on your website a number of times
Thank you brother, this is helping me alot
how is the concessional super bit relevant to small business, isnt this personal tax?
Really appreciate your videos :) 😅
Happy to hear that, Shagufta!
Am moved to Australia last month. Am a social media manager and my sales comes from Nigeria, what do I do regarding tax in this scenerio?....Also can you recommend a tax filing partner in Australia?
Great video! Do you know any accountants who are good in the small business space that you can refer? I'm new to the space and needing guidance navigating these waters 😊
This channel is so good. Getting so many good notes!
Thanks for watching, Mando!
Ll
L
Hope you don't mind the odd question.
As a standard casual/temp/perm employee. Can you legally work for an employer , but instead of receive a taxed income, trade your time for things like goods or store credit etc?
i have an ABN and i’ve spent money on social media ads, can i claim this as a tax deduction ?
As long as the advertisements are advertising your business that you conduct with that ABN, then you generally can claim these as deductions. If you're unsure however, it's best to speak to an accountant since other factors may affect what you can and can't claim.
Thanks Davie! Your first point of sole trader vs company example. I get the 25% makes sense, but doesn't this just mean the profits are kept in the company so you can access unless you distribute? In which case, you then file an individual return that could mean paying upto 45% anyway?
This is where I always get confused
He answered this question in the comments on another video and it seems the answer is that if you want to use the money for personal use you have to eventually cash out at the personal tax rate.
So the company in my opinion, seems to be more for growing your wealth over time, allowing you to save on tax within the company so you can reinvest that money back into the company's business activities so that bit of savings you get on tax compounds across time, so when you cash it out at the end you have compounded the profits inside the company at a faster rate than if you were a sole trader compounding the profits after paying a higher tax rate.
I would like to see a video on franking credits, as I think this would help explain to people how they don't end up paying double tax on Australian dividend income. So from my understanding, if you have a 'fully-franked dividend' you get a tax credit because the company has already paid the tax on it... so the individual would be able to put that tax credit towards their tax bill and pay the difference / or get a refund depending on which tax band they fall under.
I think the idea is to use the company to pay the majority of your expenses, avoiding the need for a large salary, then paying yourself a smaller salary like 80k which will be taxed at a lower rate, although that’s fine since you’ve covered your expenses.
You want to be setting up a personal abn and also a trust preferably with your spouse/partner children or business partners. Your personal income is used to purchase assets for your personal abn therefore giving you deductions/depreciation to reclaim your personal income then any additional income you make from your business you deposit into the trust so you don't pay additional personal income tax on it then the trust can either pay x amount to each of the trustees (minimising tax by spreading it amongst multiple individuals ) but the actual funds remain in the trust and then assets can be purchase through there also providing further deductions
@@guitar864 sole traders pay tax on profit not turnover.
Thanks for sharing your expertise. Your advice is really helpful and easy to follow. 👍
Glad it was helpful, mate. Thanks for watching!
can we take rebate of university fees or not
Do you mean can you claim it as a tax deduction?
It depends if it’s related to your income making activity for the business.
Good one mate!
Thanks, mate! Cheers!
Thanks Davie. Very helpful 🙂
Thanks mate
Any time. Thanks for watching!
Great video, thank you! Im curious how art bought and displayed in a business applies to temporary full expensing or to instant assessment write off? What are the limits and pros and cons?
both are quite similar - you get to claim 100% of the artwork purchase. but pls ensure it meets the eligibility requirements:
Tangible
Capable of being moved
Purchased with the dominant purpose of display in a business premise; and
Not be trading stock.
@@DavieMach Wonderful, thank you so much for your prompt response!
@@DavieMach Even if you get to claim 100% of the purchase price of the artwork, effectively what you get back would be less than 100%, wouldn't it? With that in mind, it doesn't seem to make a lot of sense to spend $1 on something that doesn't produce anything, just to get ~$0.30 back (assuming the business is subject to 30% tax rate).
Can you please make a video on small business depreciation rules, such as small business pool and how they relate & differences between TFE, BBI and instant asset write off. Thanks 😀. Sometimes I get confused while working. Thanks
25%??? Yikes. I’m happy paying 11% here in Canada.
What's the optimal strategy for someone with around $1000 or even less, to begin trading cryptocurrencies today?
You need a pro or very goodTrader. Someone like Stephany Reuben
Almost gave up due to constant losses, but Steph turned my luck around
I went from 10k to 148k with Steph. Thanks to that i paid off my debts
Leveraging market changes is a remarkable talent Stephany has
how can i get ahold of her?
🧠
The guys advice is so wrong. Sure a company has a lower tax rate. It could be halved again but wont change anything. The reality is the ato require that the profits left in the small private company must be distributed to the shareholders each year, and the shareholders pay tax at personal tax rates less the tax already paid by the business (franking credit). Go see a proper accountant and ask to see the tax trail right until the cash is in your hand. Then add the fees and costs of the company structure.
Thanks for your comment. The ATO does not require the profits to be distributed. You can leave the profits in the company for future investments or lend the money out to another company without paying the personal tax rates. As a business owner, most accountants will advise not to take all the profits out into the personal name due to tax and asset protection issues. I agree go see a proper accountant, the information in this video is just a guide.
@@DavieMach you are completely incorrect, and in my case leaving retained earnings in my professsional services company is a way bigger risk than moving them to one of the shareholders
@@Paul-sd8vk Ok mr accountant
I never pay tax on cash, the gov doesnt know how much cash i get anyways haaha, aus tax you have to pay GST in my work, basically anyone who gets cash wont pay tax australia has the worse tax system
This didn’t age well. We will be cashless soon 😂😊
@alexrydercarter hence why they want to go cashless 😂 so they can rape us for every dollar we make.
I want more creative tax breaks..
Am moved to Australia last month. Am a social media manager(sole trader) using Stripe and my sales comes from Nigeria, what do I do regarding tax in this scenerio?....Also can you recommend a tax filing partner in Australia?