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Gift to spouse's business

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Hi, My partner is in the process of starting a new business while I work full time in a completely seperate industry, to help things along I purchased an amount of equipment and gifted to her. Is there any deduction that can be claimed for the value of the equipment for my own tax return?

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Hi @Greasemonkey,

 

Thanks for your question!

 

Generally speaking, purchases made for a business can only be claimed as an expense by the business itself. Though you did incur the expenses on behalf of your partner's business, those expenses do not directly relate to your income producing activities and so they are not deductible on your tax return. Because your partner did not incur the costs of the equipment herself, she cannot claim any deductions either.

 

Sorry we couldn't be more helpful.

 

Thanks,

 

Rachael B.

1 REPLY 1
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @Greasemonkey,

 

Thanks for your question!

 

Generally speaking, purchases made for a business can only be claimed as an expense by the business itself. Though you did incur the expenses on behalf of your partner's business, those expenses do not directly relate to your income producing activities and so they are not deductible on your tax return. Because your partner did not incur the costs of the equipment herself, she cannot claim any deductions either.

 

Sorry we couldn't be more helpful.

 

Thanks,

 

Rachael B.