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No Income, how do I claim deductions?

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Hi,

I started a small business in e-commerce retailing homewares back in April. 

I have costs associated with setting up the business and working from home however have zero income to report as we had not yet made a sale prior to 30 June 2020.

 

Am I able to claim deductions for costs of working from home and certain equipment, as it seems I cannot do this without reporting some kind of income.

 

I have earnings from my full time job.

 

Thank you for any help you can provide. 

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ATO Community Support

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Hi @rachaelmays,

 

Deductions claimed only reduce your taxable income, in turn possibly reducing your tax liability. Therefore if you have no income to report then you have nothing to claim deductions against, this is also defined under Deductions.

You cannot claim your business deductions against your other income (employment salary) unless you meet certain requirements. You may however be able to carry forward your losses and in the future claim business losses from previous years.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @rachaelmays,

 

Deductions claimed only reduce your taxable income, in turn possibly reducing your tax liability. Therefore if you have no income to report then you have nothing to claim deductions against, this is also defined under Deductions.

You cannot claim your business deductions against your other income (employment salary) unless you meet certain requirements. You may however be able to carry forward your losses and in the future claim business losses from previous years.