Announcements
COVID-19 update: We will publish updates on the JobKeeper payment soon. For now, check out the updated information on Treasury's website.

ATO Community

Gift to spouse's business

Highlighted

Newbie

Views 164

Replies 1

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?

1 ACCEPTED SOLUTION

Accepted Solutions
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.

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.