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  1. #21
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    Quote Originally Posted by A-Squared View Post
    Can we start an ask Witherwings a tax question thread!?
    Why don't you start a business & tax questions thread? I'm sure there are other BH'ers who can also offer advice

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  3. #22
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    Default New home business questions

    Quote Originally Posted by delirium View Post
    No, go for it I'm wondering the same. So domain is deductible too?
    Yes domain name is deductible. So is website hosting and web building subscriptions etc. anything to do with marketing & promotions.

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  5. #23
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    Quote Originally Posted by witherwings View Post
    Yes domain name is deductible. So is website hosting and web building subscriptions etc. anything to do with marketing & promotions.
    Can you claim any study (like a course) that's specific to starting the business?

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    You can't claim the self-education relating to future income-earning activities like employment or business. If you start a business and then take on training/study to improve the business or your earning capacity in the business then it may be deductible. It's a bit subjective as to what constitutes "starting" a business.. I guess you would have to have started earning income already.

    For example, if you want to start a hair dressing business, you can't claim a business expense for taking on a hair dressing diploma but if you already have a diploma and start the business, you could claim self-ed/training expense in the business for a beauty course, in order to provide additional services in the business.

  7. #25
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    Quote Originally Posted by witherwings View Post
    You can't claim the self-education relating to future income-earning activities like employment or business. If you start a business and then take on training/study to improve the business or your earning capacity in the business then it may be deductible. It's a bit subjective as to what constitutes "starting" a business.. I guess you would have to have started earning income already.

    For example, if you want to start a hair dressing business, you can't claim a business expense for taking on a hair dressing diploma but if you already have a diploma and start the business, you could claim self-ed/training expense in the business for a beauty course, in order to provide additional services in the business.
    Sorry, derailing again.... I started a Cert IV in interior decoration this year and also registered an ABN and a trading name this year for an interior styling company. I've not yet started trading and won't complete my studies for another 2-3 years. Where does that leave me as I started it before registering but I will start trading before I finish it.

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    Default New home business questions

    @witherwings thank you for all this advise I have a quick question I have been on ATO website & I believe most of my income is PSI I understand I can't claim any of my rent but am I able to claim a portion of electricity for works do
    Last edited by MyDino; 01-09-2016 at 09:03.

  9. #27
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    Quote Originally Posted by A-Squared View Post
    Sorry, derailing again.... I started a Cert IV in interior decoration this year and also registered an ABN and a trading name this year for an interior styling company. I've not yet started trading and won't complete my studies for another 2-3 years. Where does that leave me as I started it before registering but I will start trading before I finish it.
    It's a bit of a grey area because there is no exclusion clause in the legislation. Technically you should be able to claim self-ed expenses if they relate to your current income earning activity, so if you're already running the business (in say, 2 years time) and for that last year of studying interior decoration you are also earning income as an interior decorator, then you should be able to claim the course fees and all related costs. The legislation doesn't specify that the course has to start "after" the income earning activity begins, only that it has to be studied concurrently, and that the study and the work have to have the relevant "nexus", ie it needs to be very strongly related. So based on this, I think you should be able to claim the self-education/training expense in your business.

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  11. #28
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    Default New home business questions

    Quote Originally Posted by MyDino View Post
    @witherwings thank you for all this advise I have a quick question I have been on ATO website & I believe most of my income is PSI I understand I can't claim any of my rent but am I able to claim a portion of electricity for works do
    Yes you can claim a % of electricity, and also contents insurance if you have it. This is assuming you run your business from home or have a dedicated home office.

  12. #29
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    Quote Originally Posted by witherwings View Post
    Yes you can claim a % of electricity, and also contents insurance if you have it. This is assuming you run your business from home or have a dedicated home office.
    Thank you yes all work is done from home office. Is there anywhere on website that tells us how much we can claim?

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    Default New home business questions

    Quote Originally Posted by MyDino View Post
    Thank you yes all work is done from home office. Is there anywhere on website that tells us how much we can claim?
    Generally you can claim a % of the floor space, this is the easiest way to do it because trying to calculate the wattage used by each bit of your home office equipment is practically impossible. If you wanted to use a different method to claim the % you could do that too. There is actually no set rule but it needs to be reasonable.

    There is also a home office maintenance rate (for heating, cooling and lighting) you can use, which is currently 45c per hour. So if you work full time from home for 48 weeks (a year minus a 4 week holiday), it would be 48 weeks x 40hrs x 45c = 864. You can claim this without any receipts but you need to maintain a 4-week diary to record how many hours you worked from home.

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