Articles for June 2016

Great Deductions: Claiming a Private Jet as a Write-Off

Private Jet
If you operate a business, then it may be possible for you to claim a private jet as a deduction on your annual taxes. This can be a particularly useful write-off for self-employed individuals or individuals who run a business. To ensure that you can use this deduction, it is important that you use the plane in the course of business operations. You will only be able to claim a certain portion of the expenses associated with the private jet as a write-off. 

Calculating the Amount for Deductions

When you want to claim a private plane as a deduction, it is important that you accurately determine the price of the airplane and actual amount of time it is used in the course of business. The IRS scrutinizes tax returns that utilize the private plane write-off, and it is important to make sure that you are completely forthright in the information that you provide. Ideally, you should try to keep a record of the dates in which you use the private plane. The expenses associated with maintenance of the private plane should also be recorded.

Claiming Depreciation

Another benefit of using the private plane deduction is that you can claim depreciation. As the jet depreciates in value, you can claim this depreciation on your income taxes. You should gather all of the required paperwork for claiming the deduction. This includes the sales receipt for the purchase of the airplane and last year’s profit and loss statement. 

Using Form 4562

When you want to use the private plane deduction, you will also have to use Form 4562. This form can be found on the IRS website. The next step required for filling out the form is choosing the method of depreciation that is most useful for your business’s finances. These methods include Section 179 and the modified accelerated cost reduction system. If you choose Section 179, then you will only be able to claim a deduction for the year in which you purchased the airplane. If you choose the cost acceleration process, you will be able to claim depreciation over an eight-year period.

Private Security

It is also possible for CEOs to use the private plane deduction as a measure of “private security.” If the jet is used for security purposes, then the owner may owe a reduced amount of taxes. Many CEOs take advantage of the aircraft charter deduction and may be able to pay little to no taxes as a result.
When planning your taxes, it is important to consider all of the deductions available to you. The aircraft charter deduction is one example of a deduction that can significantly reduce your total tax bill.

Why a Business Owner Needs a Lawyer

companylaw

Business

If you own your own business, you will need the assistance of a good lawyer at some point during your tenure as a business owner. Whether you need help drafting documents pursuant to a change in corporate structure, drawing up documents to finalize a merger or acquisition of a new company or simply to settle a dispute with a a partner or employee, the right lawyers can make it easier to effectively run your company. We spoke to the people at Carter Capner Law in Brisbane, to get an idea of what business people should look for.

Lawyers Can Take Care of the Details for You

Your attorney can take care of all the details that you may have overlooked when writing a contract to acquire another company or when allowing a new partner to join the business. While you might not think that changing a few words in a contract matters, it could be the difference between winning a case or owing thousands of dollars to a partner or another third-party in the future.

Solicitors Have an Understanding of the Law Wherever They Practice

If your business is located in a foreign country, it may be a good idea to have solicitors who know the law in that country. Even if you have a good grasp of the law in your home country, it doesn’t mean that those laws are the same or interpreted the same elsewhere. Having a lawyer in each country where your company operates makes it easier to ensure that it is complying with all of its legal obligations.

A Judge May Have More Respect for a Lawyer

When trying a case in court, you may have the opportunity to represent yourself. While this may be worth doing in a mediation session, going to trial as you own attorney may not work out so well. In fact, the judge in your case may require that you hire an attorney who can act as your legal guide throughout the case. If you are required to retain counsel regardless of whether you try the case yourself or not, it may be beneficial to hire someone to represent you fully.

Your Lawyer Has More Resources to Study the Law in Your Case

An attorney may have more resources such as a team who can research relevant case law as well as better resources from where to glean that information. While doing research online may be alright to get a basic understanding of the law, it will not replace being able to read actual court decisions.

For business owners, a good lawyer is someone who should be part of the company payroll. Your attorney may be able to help get cases dismissed or settled in your favor, which means any money that you pay him or her will be more than repaid after one or two favourable court decisions.

How to Launch a Real Estate Business

real estate

real estate

Working in real estate can be quite lucrative if the person involved is especially good at it and develops the right kind of clientele over the years.
It is a captive audience industry. People need houses to live in. And they are more likely to buy an existing house rather than building a new one from scratch.
The first step in starting your own real estate business is to get the idea of doing it firmly planted in your head. After that you can write down what your goals and ambitions are in terms of what you hope to accomplish. You should meet and talk to business owners about the realities of starting, owning, and running your own business.
If you are going into the real estate business you will need to educate yourself about all aspects of the business. Colleges have real estate degrees that will result in you earning a Master’s Degree or an MBA. If you don’t want to go through the multi-year process, many colleges offer non-degree real estate training programs. You take real estate courses that prepare you to pass the local or state exam that will earn you a license to be a real estate broker. The course will cover such topics as an agent’s duties to principal and third parties, pre-listing and listing practices, the various listings procedures required, basic rules and regulations, and how to work with buyers.
Once you have passed your real estate courses, and gotten the required real estate training, you need to make a assessment of the market you will be jumping into. Of course, real estate markets vary from city to city. You could reside in a town with a healthy high end market that features multi-million dollar homes, or in a town made up of entirely of blue collar and middle class homes.
You need to make an honest assessment of your local market and decide what niche your new business can carve out within the marketplace.
In general, the US Small Business Administration has set up a list of questions you should ask yourself before starting a company. They include:
* Who and what is my competition?
* What will my advantage be in the marketplace?
* Why will they buy from me?
* What’s the best way for me to reach my customers?
These are the basics of getting your real estate business off the ground. If you have a great business plan, and the right amount of tenacity, you just might succeed in a big way.

Wagering Companies Hoping for Lower Fee Regime in Victoria

horse racing

racing Victoria

 

The wagering industry has put pressure on Racing Victoria, leaving the racing body to consider implementing a lower fee regime aimed at punters who bet large amounts, but don’t leave much margin for bookmakers.

If Racing Victoria instead chose to back down, it would represent a large victory for various bookmakers like Tatts Group, Tabcorp, as well as operators of online wagering sites like Betfair, Sportingbet, Ladbrokes and Sportsbet. There are millions of bets being made on racing in Australia, with many of them being placed online. Bookmakers deploy various strategies to attract new punters, such as offering free bets online and other bonus offers. In fact, online gambling publications are often filled with advertisements for free bets Australia, which shows that online betting has gotten very popular in the country.

James Henderson, the chief executive designate of William Hill, a British wagering company that owns various online bookmaking sites like TornWaterhouse.com, Centrebet, freebets.com.au and Sportingbet, expressed confidence that a lower tax regime for big punters will be put into action by September, just in time for the beginning of the Spring Racing Carnival. Mr Henderson, who was visiting Australia, stated that William Hill is willing to work together with Racing Victoria to work out a model that is sustainable.

A new fee regime was announced by Racing Victoria back in May, with the objective of making up for diminishing revenue coming from traditional Tote betting, as more and more punters instead preferred to place their wagers online. With their offers of free bets Australia, many online bookmakers have been able to acquire new customers who regularly bet on racing events.

However, operators of online betting sites weren’t satisfied with the new model, which increased fees and caused the introduction of fees being levied based on income coming from revenue or turnover. Online bookmakers have said that this recent move would lead to them directing punters to place bets on racing and sports events in other states, even though Victoria is the most popular one.

According to Tabcorp, their earnings could be reduced by $4 million as a result of the recent move. Bookmakers have stated that higher fees charged by the racing body would mean that wagers made by “high turnover, low margin” punters would now be unprofitable. The racing body is now considering implementing a different regime, one that would instead levy on bets from punters who made over $100,000 in wagers during the quarter.p

It isn’t just the big punters that are making bets on thoroughbred racing in Australia. With so many free bets online offers, many punters that bet small amounts or only wager occasionally are now using online bookmakers to place their wagers.

Starting a Business in Australia

business visa
business visa
Australia is a market that businesses have been flocking to from around the world for many years. That trend shows no sign of changing any time soon. The fact of the matter is that there has never been a better time to begin doing business in the land down under. However, like all countries, Australia has their own rules and regulations that must be abided by in order to legally operate a business there. Knowing the necessary steps that you need to take can save you time and prevent your business from becoming mired in a sea of government red tape. 
The vast majority of countries require companies operating within their borders to be registered. Australia is no different. If you are running a business in Australia, you will be regularly interacting from various agencies that represent federal, local and territory governments. Business registration is critical because it enables various government branches to ensure that they are collecting the proper amount of taxes from your business. Along with your business, your domain name for your website also needs to be registered. It may be necessary for you to acquire a business license for your company. This depends directly on where in Australia your company is operating and what type of business you are running.
Immigration issues
If you are a citizen of a foreign country and you are going to want to live in Australia on a permanent basis to oversee the daily operations of your business, you would be advised to hire an immigration lawyer to help you with the transition process. If an employer sponsored visa kit or migration visas kits will be needed, he or she will keep you informed. An immigration lawyer will tell you what documents you need to file so you can avoid any legal issues stemming from your inability to live and work legally in Australia. This includes an employer sponsored visa kit, migration visas kits or any other important documents. 
Employer requirements
There are various requirements that employers need to be aware of when they do business in Australia. All wages must be paid based on the State of Federal award. Every business in the country must register with the Australian Taxation Office. Accurate employment records must be kept. All businesses must pay superannuation contributions. All safety and health standards must be met. Lastly, all employment conditions and terms must be complied with.
Business name registration
If the name of your business is not registered and on file with the territory or state government in which it is located, you will not be legally permitted to do business there. Registration is needed for businesses with a name that is different than the person in charge of it. Registration is also necessary for all businesses that want their website to have a .com.au domain name. Since many companies rely on a stream of income to be generated through online sales, it is imperative that businesses are registered to have a domain name associated with Australia. Obviously, you can not register a name for a company if it has already been registered. 
In order to avoid choosing a name that is already registered for use in Australia, contact the Australian Securities & Investments Commission and request to see the national business names index. This list has the names of all companies that are registered to do business in the country. There is no charge to look at the list.