How to enter tax planning strategies into a TaxPlan by selecting tax strategies to show how you can save a client tax.
Make Tax Planning Adjustments
Start by selecting some Information Only strategies at the top (rest your cursor on Select a Strategy to view the options).
If you select Trust Distribution Resolutions, green Yes / No radio buttons appear for you to select and apply. Doing so will generate content in the TaxPlan report to recommend to the client that they have a trust distribution resolution prepared before the end of the year.
Click the green plus icon (+) next to Tax Planning Adjustments to enter another strategy.
To remove a tax strategy, click on the minus icon (-).
Tip: You don’t have to enter full search terms to locate strategies; just start typing ‘pre’ for example and all the Prepayments strategies will come up to choose from.
As you enter amounts for each tax strategy, the Tax Savings field at the bottom of each entity column will continually calculate as you’re going along. The Tax Savings calculation is dependent on the information at the top of TaxPlan under Entity Information > Tax Rate For Tax Strategy Savings.
Review Tax Savings from Tax Planning Strategies
At the bottom of each entity column you can review the Tax Savings from Tax Planning Strategies being calculated in the Group Totals on the far right of the screen.
Average Tax Rate
The Average Tax Rate is made up of tax assessed being the gross tax payable – Medicare levy, surcharges, HELP, offsets – everything before tax payments. Tax payments are franking credits and everything else to estimate what the Average Tax Rate is based on the tax deductions being suggested to the client for tax planning adjustments.