Hi guys
If I bought some things for my business but didn't officially start the business or earn any income from it in that financial year, can I claim those expenses as business expenses that financial year or another financial year?
And when can I start claiming/listing them as assets?
Thank you
Hi @SoulStream
You can claim them in the financial year you incurred the expense. You'll have to complete the business section of your tax return.
If you have business expenses and no income, then you'll have what's called a business loss. If you have no income, you can offset this loss against then it's carried forward to the next year and so on. As soon as you have income you can claim it against, then it must be used.
Hi @SoulStream
You can claim them in the financial year you incurred the expense. You'll have to complete the business section of your tax return.
If you have business expenses and no income, then you'll have what's called a business loss. If you have no income, you can offset this loss against then it's carried forward to the next year and so on. As soon as you have income you can claim it against, then it must be used.
Thank you Yiana! :)
Hi Yiana
Just to clarify as well, what if the business wasn't started in the same year the expenses were incurred - can they still be listed as expenses in that financial year ?
Thank you
Hi @SoulStream
Generally, expenses incurred prior to commencing a business aren’t deductible.
This is because it’s essential that a business is being conducted.
Check out our further info on Are you in business? if you need help determining this.
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