2022 Tax tips – How to Engineer a Tax refund this year

Did you know that the combination of the Loss Carry Back and the Temporary Full expensing provisions may help you engineer a tax refund this year?

The Loss Carry Back Tax offset allows eligible business who have experienced a tax loss in the 2020 -2021 tax year, to offset this against taxable income in previous selected years.  Click here to learn more about Loss Carry Back

Temporary Full Expensing allows eligible businesses to immediately deduct the business portion of the cost of eligible depreciating capital assets. Click here to learn more about temporary full expensing

If you combine these you may be able to turn a 2021 – 2022 taxable income into a tax loss and then engineer a tax refund this year.

 

An example:

2020 – 2021 expected taxable income pre any temporary full expensing $30,000
Eligible depreciating asset cost $50.000
Adjusted tax loss after deducting cost of eligible depreciating asset $20,000
Taxable income 2019 – 2020 $30,000
Potential cash tax refund (assuming sufficient franking account balance) $5,000

In this example you spent $50,000 to purchase an eligible depreciating asset that the business needed and you got an upfront tax refund of $5,000.

If you want some help to understand your business finances, contact me below.

 

If you like this, why not share this with a friend, simply click on one of the icons to the left or below
[simple-social-share]

Contact Wayne Wanders for your FREE Business Survival Session

To ensure I help your business specifically, the best approach I have found is to have an obligation free session with you.  In this session we will review your current business in a factual and objective manner, to better understand the challenges that you face.  And this session does not need to be face to face.

At the end of this session, you will have multiple ideas on how your business can survive and thrive in these uncertain times.

Simply fill in the contact form below or email me at wayne@aRealCFO.com.au or call me on 0412 227 052 to organise one of these obligation free sessions.

5 + 10 =

To get help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times, simply use the contact form on the left to email Wayne or call him on 0412 227 052.
We promise to keep your email address safe.
Let Wayne Wanders, a fully qualified and experienced CFO, help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times.

Wayne Wanders, A Real CFO

wayne@aRealCFO.com.au

If you like this, why not share this with a friend, simply click on one of the icons to the left or below
Business Survival Guide