6 Tax Deductions You Can Claim As A Small Business Owner

In Australia, small business owners can get many tax deductions that will ensure that your profits remain with you as much as possible and not with the government. Any service offering tax preparation in Gold Coast will be able to help you identify and take advantage of such deductions. Below, we look at six tax deductions you can claim as a business owner.

Travel

If your business pays for travel expenses of employees, then you can claim such expenses as tax deductions. This will include things like train fares, bus fares, airline tickets, taxi charges, and so on. For overnight travel expenses, keep written evidence of all fares. If travel extends to six nights or more, make sure to have a diary that records all the business activities undertaken during the period. Meal expenses and accommodation costs of overnight business travel are also eligible for tax deductions.

Assets

When it comes to assets, business owners can claim an immediate deduction for the portion of the depreciating assets that cost $20,000 or less. For other assets, you can combine them into a business pool and claim a defined percentage every year over time. However, if the balance of the pool is less than $20,000, you can immediately make a claim at the end of the year.

Repairs

For businesses that use a lot of heavy machinery, all costs like repairs and maintenance can be claimed as tax deductions. Any good service doing tax preparation in Gold Coast will sort out the repairs which are eligible for deductions.  This usually includes things like conditioning gutters, painting, machinery repairs, electrical appliance repair, plumbing maintenance, and so on.

Home Business

If your business is operated out from a home, you can claim a number of tax deductions. For one, occupancy expense like mortgage interest, rent, land taxes, house insurance, council rates etc. are all eligible for deductions. Similarly, running expenses like electricity, gas, cleaning expenses etc. are also tax deductible as per the law. In case you sell off your home, you will have to pay capital gains tax on the business portion of the asset and declare the same in the tax return.  

Motor Vehicle

Many businesses own motor vehicles as a part of their operations. If you too operate a vehicle fleet, you can claim expenses. Calculating such expenses will depend on many factors like the type of vehicle you own, how you use it, the structure of your business, and so on.  

Operating Expenses

Finally, general operating expenses that your business incurs in its daily activities can be claimed for deductions. This typically includes things like stationary expenses, insurance expenses, electricity, internet, phone charges, salaries, and so on. Make sure to maintain an accurate record of all such expenses and you should easily be able to claim deductions on most of them. Keep in mind that you cannot claim a deduction on private expenses. So, if you spend a few hundred dollars from your own pockets for some marketing, then those won’t be considered deductible.