I am a sole trader with a business which handles imports and exports of food ingredients. I have just written a book and my accountant says I have to handle it as a separate entity for tax purposes. So I need to sell $20k of books before I can start claiming any expenses involved in the writing and promoting the book. Is that correct?
my accountant says I have to handle it as a separate entity for tax purposes.
Correct.
So I need to sell $20k of books before I can start claiming any expenses involved in the writing and promoting the book. Is that correct?
Expenses can be claimed, but resulting loss will need to be carried forward to a year when one of the non-commercial loss tests is passed.
my accountant says I have to handle it as a separate entity for tax purposes.
Correct.
So I need to sell $20k of books before I can start claiming any expenses involved in the writing and promoting the book. Is that correct?
Expenses can be claimed, but resulting loss will need to be carried forward to a year when one of the non-commercial loss tests is passed.
So if I meet just one of them then I can claim? I meet this one: Your individual income is less than $250,000 (excluding any taxable amount released through the First Home Super Saver Scheme) and either: Your taxable business income is at least $20,000 in the tax year (Yes but not from the book)
· Your business has produced a profit in three out of the past five years (including the current year) (Yes but not from the book, from other activities)
22 Apr 2024 · 6 min read time
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