6 Easy Tips to Help You File Taxes for your Deceased Loved One in Australia
6 Easy Tips to Help You File Taxes for your Deceased Loved One in Australia
Dealing with the aftermath of a loved one's passing involves responsibilities, and one crucial aspect is managing taxes. Funera Sydney is here to make this process smooth and straightforward. Let's dive into a quick guide on filing tax returns for a deceased estate:
Dealing with the aftermath of a loved one's passing involves responsibilities, and one crucial aspect is managing taxes. Funera Sydney is here to make this process smooth and straightforward. Let's dive into a quick guide on filing tax returns for a deceased estate:
1. NOTIFY THE ATO:
Inform the Australian Tax Office (ATO) about the death by completing the online ATO Notification of a Deceased Person form. Schedule an appointment at an Australia Post branch within 30 days, armed with essential documents.
Inform the Australian Tax Office (ATO) about the death by completing the online ATO Notification of a Deceased Person form. Schedule an appointment at an Australia Post branch within 30 days, armed with essential documents.
2. LIST ASSETS & LIABILITIES:
Create a list of assets (bank accounts, investments) and liabilities (mortgages, loans) to understand the estate's financial picture.
Create a list of assets (bank accounts, investments) and liabilities (mortgages, loans) to understand the estate's financial picture.
3. INHERITANCE TAX & TRANSFERS:
Get professional advice on potential taxes related to inheritance. Know how assets transfer from the estate to beneficiaries, trustees, or executors, and the tax implications involved.
Get professional advice on potential taxes related to inheritance. Know how assets transfer from the estate to beneficiaries, trustees, or executors, and the tax implications involved.
4. TAXES TO CONSIDER:
- INCOME TAX: Applies to any estate-generated income during administration.
- COMPANY TAX: Ensure continued payment if a business is transferred.
- CAPITAL GAINS TAX: Understand potential triggers, especially on asset sales.
- SUPERANNUATION TAX: Consult experts if the deceased held a Self-Managed Super Fund.
5. TAX RETURN PREPARATION:
After ATO notification, prepare tax returns using ATO paper forms. Clearly label each page with 'DECEASED ESTATE' and, if necessary, apply for a Tax File Number for the estate.
After ATO notification, prepare tax returns using ATO paper forms. Clearly label each page with 'DECEASED ESTATE' and, if necessary, apply for a Tax File Number for the estate.
6. FINAL ESTATE TAX RETURN:
If there are capital gains or profits that exceed the tax-free threshold, file a final estate tax return. Pay the identified tax amount and consider setting it aside before distributing assets to beneficiaries.
If there are capital gains or profits that exceed the tax-free threshold, file a final estate tax return. Pay the identified tax amount and consider setting it aside before distributing assets to beneficiaries.
In summary, Funera Sydney is your ally in navigating the tax side of estate administration. For more info on taxation matters related to deceased estates, contact the ATO on 13 28 61 or visit their website. Reach out to Funera Sydney at (02) 9954 6655 or 02 9954 6655 in Sydney, 02 4955 1110 in Newcastle, and 02 4243 8755 in Wollongong for compassionate assistance during this challenging time.