Hi, I am a small sole trader (not registered for gst) and I have the option of sponsoring a hole at my local golf club. They provide signed etc for this.
Am I able to claim this as a tax deduction? Does my turnover vs how much this cost impact how much I can claim?
Thank you.
If you are paying for signage relating to your business and getting nothing else in return, that would be advertising and a deductible expense. However, if you get other benefits e.g club membership, food and drink, function attendance or playing rights as part of a package, some of the expenditure would be entertainment and not tax deductible.
Two ATO references to sports related expenditure are are TR 92/162 and ATO ID 2005/286. If you are are purchasing a sponsorship package, including entertainment, ask the club if they are able to give any guidance on valuing the different components.
This is clearly not a tax deduction
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