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Maximum deductions if you have two jobs?

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Newbie

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I teach a group music lesson at a school for an hour a week. I act as a sole trader and only earn $1k a year from this. My main job pays about $80k and is completely unrelated to music. When I do my tax I only have to do an individual tax return for both incomes combined.

 

I don't teach to earn money, but because I want to share my knowledge.

I buy instruments and recording equipment with the money I earn and use it to teach the kids.

If I spend more than $1k on the music equipment can I only deduct up to $1k from my taxable income? Or can I deduct more, theoretically up to $81k.

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Most helpful response

Taxicorn

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You can deduct as much money as you have spent on work-related expenses that you haven't been reimbursed for.

 

However, any sole trader income will only be reduced to $0.

 

Any excess will be carried forward as a business loss and used to offset future sole trader earnings.

1 REPLY 1

Most helpful response

Taxicorn

Replies 0

You can deduct as much money as you have spent on work-related expenses that you haven't been reimbursed for.

 

However, any sole trader income will only be reduced to $0.

 

Any excess will be carried forward as a business loss and used to offset future sole trader earnings.