What Purchases You Can Claim as Tax Deductible?
Many small business owners will rush to get their tax claims in, probably sooner than they really have to. Why not wait until the end of the financial year to start upgrading your corporate equipment?
Here are a few purchases that you may not realise you can claim on tax.
Technology Claims:
Any corporation
or business must stay on the leading edge of technology in order to
succeed. You will be pleased to know
that your office equipment can be claimed including, computers, laptops,
phones, tablets, copiers, printers, and televisions.
Suggested
Products:
Furniture Claims:
Items that
include file cabinets, brochure holders and desks are always included in your tax break but you
might know there are other items you can purchase for other purposes. You might consider upgrading your reception
area with a nicer desk or a display cabinet which will also contribute to a pleasant
environment for visiting customers.
Suggested
Products:
Upgrade Your Executive Meeting Room:
This space is
critical for collaborations and discussing everything from marketing strategies
to profit gains. If it's time to get new
furniture and equipment, your purchases will be tax deductible.
Suggested
Products:
Your Corporate Décor:
Your corporate
décor is tax deductible as long as it's used to improve your business. Some of these items can be poster holders and
signage.
Suggested
Products:
Eligible Kitchen Equipment:
More than
likely, you have a kitchen area for your employees to use when they are on a
break or during their lunchtime.
Refrigerators, coffee machines, food display cabinets and snack dispensers are quickly
deductible with the instant asset write-off.
Suggested
Products:
Safety Products:
If you are a
construction business, you must have safety products on job sites. This includes OHS tools and equipment that
will benefit your employees and their safety.
Safety items are definitely instant asset write-offs.
Suggested Products:
In Conclusion:
If you are
planning to claim any of these items, make sure you keep copies of your
purchases. This includes invoices, bank
statements, and receipts of purchase.
You will have to prove that you have expenditures in order to claim your
deductions.
Not sure if you're entitled to the tax break? If you are an Australian small corporation, you may be eligible for the government's $20,000 instant asset write-off.
The Requirements for The Small Business Tax Deductions:
- Assets that cost less than $20,000 qualify for the deduction (excluding GST).
- If the cost of a given asset is $20,000 or more, it will depreciate over a number of years.
- If you have several items that were purchased for less than $20,000 each, the cost of each item will be written off.
- In order for your business to claim a tax break, the accumulated annual turnover must be less than $10 million.
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