Australia’s Small Business Restructure Rollover Explained

Operating a small business is a challenge. The Australian Government offers a range of incentives to simplify the process, and we’re going to provide a small business restructure rollover example in this article.

Small business restructure rollover

We’ll show how the small business restructure rollover scheme makes it easier for small businesses to adapt to changing market conditions and meet the needs of their customers.

The Small Business Restructure Rollover Scheme

The Australian Government offers a number of incentives to small businesses that are designed to encourage growth and reduce red tape. The Small Business Restructure Rollover (SBRR) scheme is a tax concession that simplifies the process of transferring assets when restructuring a small business.…

Continue reading

How to Get Independent Contractor Quarterly Taxes Right and Avoid Penalties

Independent contractors have it rough when it comes to handling taxes. While the rest of the working world has income deducted from each paycheck to cover taxes, the independent contractor is forced to figure everything out on their own.

Calculating tax benefits

Figuring out your own taxes can feel like working on a complicated math problem. When you get the problem right, you have the pleasure of forking over your money. When you get the math problem wrong, it means penalties, or worse.

In this article, we take a look at how independent contractors can get their quarterly taxes right.

The Situation

Independent contractors are disadvantaged from a tax perspective in several ways.…

Continue reading

Should Your Small Business Hire a Tax Preparer?

The tax filing deadline is fast approaching, but you are yet to finalize your paperwork. What do you do? Will you go into panic mode and make things even worse?

Tax preparation

One of the reasons some small business owners get into trouble with the taxman is the tendency to do everything independently. Although you can collect and piece together a few pieces of information, this process is too complicated for you. That is why you have to hire a tax preparer to take you through the process.

Before choosing to do it yourself or hire a tax preparation professional, you need to know what each option offers.…

Continue reading

Why File Form 2290 Online?

If you are into the trucking business, you must be aware of form 2290 and Heavy Vehicle Use Tax (HVUT). The IRS mandates that every person who owns a heavy highway motor vehicle weighing 55,000 pounds or more and covered 5,000 miles or above in the odometer file form 2290 and make the HVUT payment.

Fleet of trucks

You can file form 2290 online or manually. Manual filing of form 2290 can be time-consuming and tedious, whereas e-filing allows you to file much faster, and with ease. When you e-file, you will receive your stamped Schedule 1 copy within minutes compared to paper-filing, which takes up to 6 weeks.…

Continue reading

ITR Filing: 7 Reasons Why You Should File Income Tax Returns

Your tax return is your sole responsibility. So if you generate income in Australia, you have to have a tax file number (TFN) and pay taxes using your earned money. You can compute the amount you need to pay for taxes in a specific year based on your annual tax return.

ITR - income tax returns filing

photo credit: Karolina Grabowska / Pexels

“Whether you’re a U.S. citizen or a green card holder living in Australia, you need to be aware of your tax obligations as a U.S. expatriate [in Australia], which can be a complex issue without guidance. For instance, if you earn income while on a short-term assignment in Australia, you are required to report that and any other income earned [in Australia] on your U.S.

Continue reading

Guide for Software Companies When Claiming R&D Tax Credits

Maybe you’ve heard that somehow a variety of practices associated with the implementation of updated or upgraded software might be considered for the R&D Tax Credits. Needless to say, the benefit is aimed at promoting the advancement of novel and advanced processes and technologies. The credit will help to reduce the uncertainties associated with creativity and recognize foresight.

R&D tax credits

When analyzing the seven major stages of the Software Development Lifecycle (SDLC), it’s the fourth stage which development and coding entail operations that qualify for special tax credits.

Thus, while the new rules favored commercial software providers, you do not preclude your business solely just because you do not sell software to external parties.…

Continue reading

The Steps to Take if Your Business Can’t Pay Its Taxes

When it comes to business taxes, it doesn’t pay to mess around with what’s due to the IRS. They don’t have a sense of humor about getting payments in on time and can take steps against the business, including charging interest, adding penalties or even freezing accounts if it comes to it.

Tax season stress

In this article, we cover the steps to take when a business is struggling to pay its taxes.

1. Confirm the Due Dates for Federal Income Taxes

There’s a tax return date based on the type of business structure.

For federal taxes (state ones may be different), the tax return data for filing is also the payment date for the taxes too.…

Continue reading

Surprised By The New 2018 Tax Laws? 4 Strategies To Handle The Changes

Once you get the hang of preparing taxes for your small business, April doesn’t seem so challenging. That is, until tax laws change and suddenly you don’t know if you can still claim your small office deduction. When this happens, the need to hire a tax professional to prepare your return becomes a necessity, not just a convenience.

2018 Tax Law Changes

Not sure what to do about the tax changes that went into effect for 2018? The changes will remain in effect at least until 2025, so there’s no time like now to get acquainted with what’s new.

1. Hire a tax professional to do your taxes at least once

Hire a tax professional to do your taxes at least for the first year.…

Continue reading

7 Little-Known Tax Deductions for Small Businesses

Many small businesses dread filing their quarterly taxes, but deductions help owners lower their tax burden. In addition to the standard deductions that most businesses take, there are lesser-known write-offs that can reduce tax bills even further.

Small business tax deductions

1. Home Office

If you run your business out of a dedicated home office, you may be able to take the home office deduction. The catch with this deduction is that the space must be used exclusively for business purposes.

There are two ways to deduct a home office:

  • Deduct actual expenses. You’ll need to have records for the cost of painting, repairs, utilities, rent, insurance and other expenses you want to write-off.
Continue reading

Business Taxes That Small E-Commerce Businesses Should Be Aware Of

Managing taxes for your business is, well, taxing. It involves a lot of paperwork and several receipts, all of which you need to properly sort out and file. Even if you’re running a small business, taxes are still part of your responsibility, and this same goes for small e-commerce businesses.

Calculating taxes

Are Online Businesses Required To Pay Taxes?

One common misconception is that selling online does not involve paying taxes. Some e-commerce store owners may not know this, but paying taxes may be required in the area where your business market is operating.

In some places, taxation includes Internet marketplaces – that is, e-commerce websites like Amazon and eBay whose products are sold by individuals and not by the websites themselves.…

Continue reading