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Re: Instant asset write for sole trader and casual worker

Initiate

Views 509

Replies 2

Hi,

Say I buy a camera for my sole trader business, and use that as an instant asset write off (within the regulations) is that instant asset write off deducted from the total taxable income of both my sole trader and casual job, or just deducted from my sole trader total taxable income?

Cheers!

1 ACCEPTED SOLUTION

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Most helpful response

Enthusiast

Replies 0

HI @AlStur ,

 

If you are going to use the camera for your sole trader business, you will have to deduct it from the sole trader portion of your tax return (Adjusted for business percentage, if not being used entirely for the business), which in effect will reduce your total taxable income. You can refer to Write-off threshold  from ATO for write-off amount limits.

 

Hope this helps!

 

2 REPLIES 2

Most helpful response

Enthusiast

Replies 0

HI @AlStur ,

 

If you are going to use the camera for your sole trader business, you will have to deduct it from the sole trader portion of your tax return (Adjusted for business percentage, if not being used entirely for the business), which in effect will reduce your total taxable income. You can refer to Write-off threshold  from ATO for write-off amount limits.

 

Hope this helps!

 

Former Community Support

Replies 0

Hi @AlStur,

 

Just a note - the best way to remember is that if it's a business expense it can only be deducted against your business income. If you don't have any business income yet, or your expenses outweigh your business income, this cannot be claimed against your other sources of income to reduce your tax there. You would want to carry the loss forward to be claimed in a later year when you have enough business income to warrant it.

 

So, @Tobito is correct that it would reduce your taxable income, assuming you have taxable income from your business. If not, no, your total taxable income for the year will not be reduced. 

 

Only under certain circumstances can you offset your business loss against your personal income in the same year.