TaxPlan section ‘Projected Income to 30 June’
For each entity in TaxPlan you need to work your way down the screen and type in the projected income for the year for each entity column.
Once you've worked out income or estimated income for the year, this is where those numbers are entered and itemised:
- For Individuals, enter their Gross Wages for the year
- For a Company, Trust, Individuals or Sole Traders enter expected Net Business Profits for the year
- Enter the taxable amount into Net Capital Gains (Example: if the gain is $1,000,000 but you’re using the general discount of 50% you enter $500,000 being the taxable amount)
- Enter Dividends Received – Franked Amount and any Dividends Received – Franking Credits
- For unfranked dividends use the Dividends Received – Unfranked Amount field
- With a super fund, include any employer or member contributions in Super Emp. & Mem. Contributions
- Enter primary production income for the current year into Primary Production Income (Remember: in the Entity Information section, above, you would put in the prior year’s primary production basic income). Learn more about how to manage nil or loss PP income
- Enter farm management deposits i.e. net deposits or net withdrawals into FMD – Net Deposits (Example: if money was deposited, it appears as a negative with income going down. If money is taken out, it appears as a positive. In other words, tax will be paid on it for the year as opposed to a deposit when it's reducing income)
- Follow with line items Foreign Income, Interest Received and Rental Income
- Div7A Interest Received is important to show your clients before the end of the year that you've done your calculations on Div 7A, so they're aware if there's any repayments that need to be made
- If a trust distribution was received from an entity outside of this group’s TaxPlan, enter the amount into Distributions Received – Outside Group (TaxPlan allows you to make trust distributions within each entity but in a separate field. However if we receive a distribution from a trust that's outside the group that we're modelling, enter this income into Distributions Received – Outside Group)
- Finally, add any other income into Other Income
Completing the steps above will calculate Projected Income for each entity or individual before you do any tax planning.