Help claiming things on tax....

[dloiscute]

Hey guys,

I've asked around heaps lately, but my parents and my studying accountant friends aren't really quite sure on my options.

I recently acquired my ABN for some freelance editing work for a media/creative consultant. I was wondering if I was to purchase another LCD monitor, can I claim this as an expense?

If so, what could I expect from this? Like claiming the full thing? or get 50% back or something?

Thanks in advance.


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[Karai Pantsu]

Work expense, easy.

I've always just claimed the full amounts on things - not sure if that's the way you should do it, but it's worked for me thus far.
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[Island_Wolf]

Income tax and deductions for small business-Expenses you can claim over time
According to this site, it seems like you can only claim the depreciation of the monitor if you have been using it for work.

[dloiscute]

Sweet, thanks!

That's the most common reply I've gotten so far, so everything is looking good.

I figure I should make an appointment with an accountant sooner or later. Do you know what paper records I should keep? Just the tax invoice?

I sadly have to go to work now-I just don't want to seem rude and not reply haha.
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[Spanca]

You need to keep records relating to any tax matters. If you're claiming it as a deduction, you need to keep records (within reason) of all the relevant stuff relating to the deduction, stuff like the method used to depreciate (basically 4 years or the life of the asset if less) as well as the amount you're using it for work. I say 'within reason' because they're not going to expect you to keep records of stuff like how many hours a day you use the monitor for work or private stuff, but basic stuff like the receipt is a must.

If you're only going to be using it for say 20% work and 80% other stuff, you'll have to apportion the deduction and only claim 20%. If you're using it 'predominantly' for work then you could claim the whole lot (can't remember the exact threshold test).

Having a chat with an accountant or tax consultant wouldn't hurt just to clarify this stuff if you're going to be doing this stuff more regularly and complicating your own tax matters. If you're making a business of it then it's a must.
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[THEMAN]

The one thing about tax. I really hate it when my receipts fade into a blank piece of paper. :@
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[dloiscute]

Thanks Karai, Island and Spanca for all of your input. You guys have helped further point me into the right direction. It's a massive hassle figuring this out,this new job, along with getting an ABN, working casually and Uni workload . I think life is starting to finally become real

@ THEMAN

Lol. That happened with my FF13 preorder. They had to look it up in the system because the receipt was pretty much white. haha.
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