Bitcoin: Its place in your wallet or SMSF portfolio

Posted by Team AVS on 7 Apr, 2018 0 Comments

While bitcoin may be the most well-known cryptocurrency, there are nearly 1,500 cryptocurrencies in existence. In its simplest form, a cryptocurrency is a “peer-to-peer electronic cash system”, which means that the currency is not in a physical form like cash but sits in an electronic register.

What makes bitcoin work, where previous attempts at electronic cash did not, is in the magic of something called blockchain.

Selling a business? Don’t forget the “going concern” GST exemption

Posted by Team AVS on 30 Mar, 2018 0 Comments

The concept of a “going concern” exemption for the purposes of the goods and services tax (GST) can still cause confusion when businesses are sold.

The sale of a business may be GST exempt if the enterprise is deemed to be a “going concern” — which refers to an enterprise’s ability to continue trading. The ATO says a supply of a going concern occurs when:

Is your business prepared for Single Touch Payroll?

Posted by Team AVS on 22 Mar, 2018 0 Comments

Single Touch Payroll is a government initiative to streamline business reporting obligations, which is due to become compulsory from 1 July 2018. When a business pays its employees, the payroll information will be sent to the ATO via the business’s payroll software.

What types of legal expenses are tax deductible?

Posted by Team AVS on 15 Mar, 2018 0 Comments

When a legal expense is incurred in relation to the operation of a business to produce assessable income, it is generally allowable as a deduction. Exceptions are when the legal fee is capital, domestic or private in nature if it is specifically excluded by another section of income tax legislation, or is incurred in earning exempt and non-assessable non-exempt income.

Valuations and your SMSF

Posted by Team AVS on 7 Mar, 2018 0 Comments

The days of a lax approach to valuations are over. While there is not always the need to employ a qualified independent valuer for each valuation, there are important circumstances where it is mandated, and others where it is recommended. Where one is not used then appropriate documentation needs to be kept of how valuations were determined. Back of the envelope or simply made-up valuations will not suffice.

Having fun AND making money. But is it a business or a hobby?

Posted by Team AVS on 28 Feb, 2018 0 Comments

It may seem fairly obvious whether a person is in business or not, but the distinction can be important for other reasons. Your client may be having fun AND making money. But is it a business or a hobby?

For example, if you are not carrying on a business, the option to deduct losses from other income is lost. So it’s important to establish, from a tax obligation point of view, that your “activity” is more than a hobby, and is, in fact, a bona fide business. Losses from hobbies (including most party plan ventures, such as Tupperware parties) are not deductible against other income.

The process (and pros and cons) of ‘electing’ to be a family trust

Posted by Team AVS on 23 Feb, 2018 0 Comments

Trusts are an important and very useful concept for managing one’s financial affairs, as well as estate planning.

A trust is established whenever there is a separation of the legal ownership (for example, the name appearing on a land title) from the beneficial (equitable) owner of an asset (in other words, the person that a court would deem to be the true owner).

Can an SMSF invest in property development?

Posted by Team AVS on 16 Feb, 2018 0 Comments

The ATO has been sending some mixed messages about property development involving an SMSF and has indicated that it is one of the issues on its radar for 2018. So is property development an allowable investment for an SMSF? The short answer yes, but be careful. A longer answer is be very careful — it is very easy to trip up and breach one or other rules. The ATO is keeping an eye on this and will scrutinise any fund utilising property development.

Key factors for rescuing a bad debt deduction

Posted by Team AVS on 8 Feb, 2018 0 Comments

It is very often the case that unpaid debts owed to a business can have a significant impact on cash flow and the ongoing profitability of a business. In a taxation context, the characterisation of a particular debt as either “doubtful” or “bad” is key as to whether or not the writing off of that debt would be deductible.

Is the tip you leave on a café table assessable, or consideration for supply?

Posted by Team AVS on 29 Jan, 2018 0 Comments

Have you ever gone to pay for your coffee or lunch and saw the tip jar at the local café counter, and wondered how (or if) the business and/or its staff accounts for tax on that money? Depending on a number of factors, this can add up to quite a sum over a year, assuming the café owner empties the jar each day. Not surprisingly, the taxman has thought of this scenario, and has devised guidance for dealing with “tips and gratuities”.

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