Pre paying expenses for benifit in this FY

[Emily_Zac]

Guys

I am needing to pay as much as poss this FY as there are some new rules that affect me next year re. net rental lost

I have just read this section in an ATO pdf

WHAT IS EXCLUDED EXPENDITURE?
Certain types of expenditure are excluded from the
prepayment rules. These are:
■ amounts of less than $1,000
■ amounts required to be incurred by a court order or law
of the Commonwealth, state or territory
■ payments of salary or wages (under a contract of service)
■ amounts that are capital, private or domestic in nature,
and
■ certain amounts incurred by a general insurance
company in connection with the issue of policies or the
payment of reinsurance premiums.




from this link http://www.ato.gov.au/content/downloads/IND00135745n41700608.pdf

it's the 1st point I am unsure of and that is 'amounts' does this mean that we each ( wife and me) can pay as many $999 payments for related expenses and claim this FY or just one each

Hope someone can help

Martin

 

[buzzlightyear]

You can make multiple prepayments for eligible expenses as long as each expense is under $1000 ie its not cumulative or a gross figure for all prepayments.

 

[Rob G.]

Don't worry about the excluded expenditure ceiling if you can rely on the 12 month rule.

i.e. non-business taxpayer pays today for a service that relates to a period of no more than 12 months duration and the particular period ends by June 30th next year.

Cheers,

Rob

 

[Emily_Zac]

Don't worry about the excluded expenditure ceiling if you can rely on the 12 month rule.

i.e. non-business taxpayer pays today for a service that relates to a period of no more than 12 months duration and the particular period ends by June 30th next year.

Cheers,

Rob

Thanks Rob and Buzz

I relised I was reading the wrong page

I presume I cannot use my deperication for next year this year as I did not 'pay' x anount of $'s out ?

MArtin

 

[Rob G.]

I presume I cannot use my deperication for next year this year as I did not 'pay' x anount of $'s out ?

Correct.

Depreciation is a non-cash expense and not incurred until the period has expired.

Councils will let you prepay rates, often with a small discount. Lenders will usually allow prepayment of interest subject to you fixing the rate for that period.

Cheers,

Rob

 

[Emily_Zac]

Correct.

Depreciation is a non-cash expense and not incurred until the period has expired.

Councils will let you prepay rates, often with a small discount. Lenders will usually allow prepayment of interest subject to you fixing the rate for that period.

Cheers,

Rob

cheers Rob

I need to be able to get my rental loss income as near to 0 as poss next year , If by chance I miss calculate would I be able to pick to on;y use a % of the depecation to control the the loss figure ( i.e decuction $5000 can I use just $2300 of it )

Thanks Martin