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Sole Trader Business Account Drawings

Newbie

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Replies 1

Hi,

 

I understand that as a sole trader, it is not required to open a business bank account. However it's a better decision overall to do so. But if I wanted to draw out perhaps, 50-60% of the business income to my personal account so I can pay down the mortgage, will this be a normal/non taxed/transaction? I would document the income that is spent on business expenses separately to personal drawings.

 

Thanks,

Adis.

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Most helpful response

ATO Community Support

Replies 0

Hi @AdisBosnjak,

 

When running any form of business you should always sufficiently document business income and expenses.

 

Tax is only applied to business earnings and any interest made on those earnings. There would be no tax implications involved in paying the mortgage with your business income.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @AdisBosnjak,

 

When running any form of business you should always sufficiently document business income and expenses.

 

Tax is only applied to business earnings and any interest made on those earnings. There would be no tax implications involved in paying the mortgage with your business income.