Small business top questions at tax time

What business income do I need to declare in my tax return?

When thinking about business income, start by including all of your gross earnings received through the ordinary course of your business. This includes any cash, EFTPOS, credit or debit card, and online sales. There may be other sources of business income you need to declare, depending on your circumstances. Some common examples include:

 What can I claim for my business at tax time?

For all of your business expenses, use the three golden rules:

  1. The money must have been spent for your business - not a private expense. For example, you can't claim private expenses such as traffic fines or clothes for your family. 
  2. If it is for a mix of business and private use, only claim the portion that is related to your business. For example, if you buy a computer for your business and your kids use it to do their homework; that's private use. You'll need to work out how much of the computer's use was for your business and only claim a deduction on that portion of the computer's cost. 
  3. You must have records to prove it. Whether it is electronic or paper, it is important to have records, like a receipt for your business expenses. You'll also need to show how you calculated the business portion of expenses, if that applies to the expense. 

For more information visit the ATO website or contact the team at The Money Edge. 

The Money Edge | Bundaberg 

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