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Re: Filing for first time as Sole Trader with income under TFT. Do I include expenses?

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Hi,

 

I have am a Sole Trader and need to file for the first time, for the last two tax years. 2017/2018 earnings were $500. 2018/2019 earnings were $4100. Do i need to include expenses, given it will not change the zero tax owed?

 

many thanks,

 

1 ACCEPTED SOLUTION

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Best answer

Devotee

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Yes you should report your expenses. As your running a business you may eligible to claim costs that are associated with running a business
https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Deductions-for-operati...

You will also need your expenses to calculate the cost of goods sold https://www.ato.gov.au/Individuals/myTax/2018/In-detail/Net-income-or-loss-from-business/?page=13

Check this page and it should give you some more help with lodging your first tax return as a sole trader. If you are lodging for a prior year make sure you use the right instructions for the relevant years as things can chance year to year
https://www.ato.gov.au/Business/Reports-and-returns/Income-tax-return/#Soletraders
1 REPLY 1
Highlighted

Best answer

Devotee

Replies 0

Yes you should report your expenses. As your running a business you may eligible to claim costs that are associated with running a business
https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Deductions-for-operati...

You will also need your expenses to calculate the cost of goods sold https://www.ato.gov.au/Individuals/myTax/2018/In-detail/Net-income-or-loss-from-business/?page=13

Check this page and it should give you some more help with lodging your first tax return as a sole trader. If you are lodging for a prior year make sure you use the right instructions for the relevant years as things can chance year to year
https://www.ato.gov.au/Business/Reports-and-returns/Income-tax-return/#Soletraders