But as a general rule, as long as an expense is genuinely incurred in the process of doing business, it’s deductible. Given that broad mandate, tax departments don’t usually provide a master list of allowable small-business and startup deductions. Check with your local tax authority to see what items are tax deductible.īusiness expenses are the costs of running a company and generating sales. Or maybe you shuttered your office and started running your company from a spare room in your home - you may be able to deduct costs related to rent, energy and other business-related expenses. It might seem time-consuming to keep a log separating business and personal use, but you could be missing out on significant tax deductions - in Australia this would amount to $9,360 per year at the rate set by the Australian Tax Office. But some easy moves could significantly lessen your tax bill.įor example, say you’re putting 250km per week on your private vehicle to get products out to customers. Sure, you’re focused on customer service and improving your products and services. Expense deductions may not be first thing entrepreneurs think of during the financial planning process for small businesses and startups - and that might be costing them.
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