What can be deducted
- Home Office expenses: If you are a sole trader and your home is your place of business you can claim tax deductions. This can be for a part of the costs of owning, maintaining and using your home for this purpose.
- You can claim a deduction for the decline in value of your depreciating assets. If you are small business, depreciating assets may include printers, scanners or shredders.
- Most operating business expenses can be claimed as tax deductions. Make sure these expenses occur in the same income year. Examples include: office stationery, costs for running a commercial website and work clothing.
What can’t be deducted
- Home to work travel.
- Selected business travel and phone use: make sure you only claim apportioned expenses.
- Buying your own business is not tax deductible. Related costs like website expenses and annual registrations may be.
- Other items you can’t deduct include self-education, meal costs and raffle tickets. Volunteer work, child minding expenses and vaccinations also fall under this status.
Use the ATO online resources to your benefit
- This calculator will help you work out the income amounts you need to answer the Small business income tax offset in your tax return. This offset can help reduce the tax payable on your small business income by up to $1,000 per year.
- Finally, a convenient way to lodge your business tax return is online via the myTax portal. Access is either by desktop, tablet or mobile. The deadline for lodging your tax online with myTax is 31 October, 2017 but make sure you start early!
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