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Re: Can you make a tax deduction on no taxable income

Newbie

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Replies 1

I want a start a business and need to buy some stuff in order to start it. Can I claim those stuff as a tax deduction this financial year even if I have no income from the business for this financial year. Or do I need to wait to claim it as a deduction once I start earning money?

1 ACCEPTED SOLUTION

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Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hello @Bron3

 

Deductions are used to reduce your total taxable income (income you pay tax on), not just your business income, so if you have other income, you should still be able to claim a deduction. If you don't have any taxable income, you won't be able to claim a deduction.

 

Even if you are unable to claim an immediate deduction, you may be able to claim a deduction over multiple years for any depreciating assets you purchase.

 

You can find more information on our website:

 

Hope this helps Smiley Happy

 

Tony

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hello @Bron3

 

Deductions are used to reduce your total taxable income (income you pay tax on), not just your business income, so if you have other income, you should still be able to claim a deduction. If you don't have any taxable income, you won't be able to claim a deduction.

 

Even if you are unable to claim an immediate deduction, you may be able to claim a deduction over multiple years for any depreciating assets you purchase.

 

You can find more information on our website:

 

Hope this helps Smiley Happy

 

Tony