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Claiming Asset Deductions

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Hi! Having a bit of trouble figuring out how to claim my asset deductions! 

So in August last year I started my business as a sole trader (with a registered ABN), providing audio post-production services, although my primary source of income is still from a retail job. Earlier this year I purchased a bunch of equipment and software (microphones etc.) relevant to doing my business. 

 

As I understand it, I am UNABLE to claim the instant asset write for items under $300 for individuals as these items weren't purchased in the course of employ. I also took the PSI test and was told I received PSI but the PSI rules do not apply to me. 

My confusion is as a sole trader I complete my tax return as an individual, but do I qualify as a small business entity? and hence am able to claim on simpler depreciation for small business? Which means I am able to claim an instant asset write off of up to $150,000.

 

If this is the case I am unsure of how to claim the instant asset write off on MyTax, there are prompts saying that I may be eligible for the instant asset write off of up to $150,000 on the depreciation and capital allowances tool but I can't see the option for it. Or do I claim it under the deductions tab? as opposed to the Business/sole trader, partnership and trust income tab. 

 

Do I simply have it all wrong and must just claim these things on a diminishing/prime cost depreciating basis? 

 

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Most helpful response

Former Community Support

Replies 0

Thanks for posting @ajsound

 

On our site we have three methods that you can use to help you work out if you're a small business for the income year.

 

If you are a small business for the income year please read the instant asset write-off eligibility requirements and thresholds. Before completing your return make sure that the assets you wish to claim are not on the excluded assets list. You will claim it as a deduction, at the bottom of the instant asset write-off page there are a number of examples which clearly explain how and where to record these amounts.

 

If you are not a small business but a sole trader have a look at claiming deductions when receiving personal services income. We have information on allowable deductions when receiving personal services income as well.

 

Hope this helps!

 

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Thanks for posting @ajsound

 

On our site we have three methods that you can use to help you work out if you're a small business for the income year.

 

If you are a small business for the income year please read the instant asset write-off eligibility requirements and thresholds. Before completing your return make sure that the assets you wish to claim are not on the excluded assets list. You will claim it as a deduction, at the bottom of the instant asset write-off page there are a number of examples which clearly explain how and where to record these amounts.

 

If you are not a small business but a sole trader have a look at claiming deductions when receiving personal services income. We have information on allowable deductions when receiving personal services income as well.

 

Hope this helps!