iPad can be claimed over three years if used for business of for work just like any other laptop or computer. Do not forget to apportion for any private expenses if any.
Bad debts for your small business can be claimed as tax deduction generally after 90 days or if there are indications that this debt cannot be collected such as in case where the debtor is under administration or liquidation. Bad debts must be written off before 30 June and an accounting entry should be created in your general journal. In case where there is more than one director minutes of the meeting should exist and also you should attempt to collect the debt before writing it off.
Entity formation expenses such as setting up company or trust, reconstruction costs and takeover costs can be claimed over five years period. You should create schedule of repayments and keep it in your records to substantiate your deduction.
You can plan your CGT events by signing contract in the particular financial year so e.g. if you sign contract for the sale of your rental property on 30 June 2011 you will have to declare your capital gains in the tax year 2010-2011, however if you sign your sale contract on 1 July 2011 you will have to declare your capital gains in the financial year 2011-2012. Also your 50% discount is applicable only if you owned the capital asset for 12 months from the date of signing purchase contract till the date you have signed your sales contract.
Software purchased for your business should generally be depreciated under the AOP prescribed tax depreciation rates if over $1,000, however software subscriptions can be claimed in the same year.
If your business is incurring some non-deductible expenses or you are uncertain if some expenses can be claimed you should apply for a private ruling from ATO which may enable you to claim expenses which are not normally tax deductible. Ask your tax agent/accountant for help.
Plan your family trust distribution and distribute your capital gains incurred inside the trust to individuals to be eligible for 50% discount. Also where individual beneficiaries of the trust are on marginal tax rates in excess of corporate tax rate of 30% distribution of income to any company beneficiary may be a good solution in come cases.
Loans to company shareholders, directors and associates - under Division 7A cuoul be treated as deemed dividends which means the amounts are not deductible for the company while assessable for the recipient. Loan agreements should be in place before any borrowing to company shareholders, directors and associates is made and agreements should be relieved prior to 30 June each year.
Donations to charities can be tax deductible only if your business created profits. Make sure that your donation is made to the registered charity. Also only donations can be claimed so if have bought raffle tickets or any of the items sold by charities it means this is non-deductible purchase and cannot be claimed. If you have losses on theend of the year donations cannot be added on the top of the losses, in other words donations will not be tax deductble.
You can reduce your large capital gains by making a tax deductible contribution into your superannuation. If you are an employee you could salary sacrifice into super and then use the proceeds of the sale of your asset to cover for the contribution. The best advice here is to see your financial planner.
Franking credits from trust can be distributed only if trust has a net income at the end of the year otherwise you franking credits will be used to offset the tax losses inside the trust.