Shall I Buy Some Assets to Reduce My Tax Bill?

by Nic McCondach
on 29 Jan, 2020
Nic McCondach

Assets over $500 are capitalised and depreciated. The amount of the depreciation on the asset is all that reduces your taxable profit.

A lot of people get caught out with this and buy a large capital item thinking it will reduce their tax. All it does is reduce their cash-flow and make money tight for a while.

You should always check your cash-flow before making any large purchases or business decisions. Having your financial information up to date allows you to make informed decisions based on fact not on gut feelings.

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