eTax help with other income...
- Thread starter poppy
- Start date
are assets in the pool ? different place for depreciation and rates to use if that is the case.
agreed aaron business schedule required. those labels mentioned are in no way correct.
thanks for the replies. Assets are too high for the low value pool.
I'd also thought perhaps this would go under the business section, but didn't consider that I am "running a business" - the ATMs are held in my individual name and are a hands-off investment. Not to say you aren't correct coastymike just that this was my reasoning here.
I prefer to do my own taxes rather than hire an accountant. I actually get a lot of satisfaction out of learning this stuff. Just like some here like to do their own repairs, renovations or property management on their rentals (which I think is crazy...) but each to their own!
I'd also thought perhaps this would go under the business section, but didn't consider that I am "running a business" - the ATMs are held in my individual name and are a hands-off investment. Not to say you aren't correct coastymike just that this was my reasoning here.
I prefer to do my own taxes rather than hire an accountant. I actually get a lot of satisfaction out of learning this stuff. Just like some here like to do their own repairs, renovations or property management on their rentals (which I think is crazy...) but each to their own!
Yes but if you are operating a business in 2012 financial year with under $2 million turnover you can pool assets over $1,000.00 and claim write off for any assets under $1,000.00. Plus even if you purchase the asset at 30 June 2012 you can depreciate it at 15% for the full year. Second year depreciation is 30%. Also there are a lot of other tax benefits in operating a small business. (entrepreneur tax offset for one). I would think you could easily save more in tax than you would pay in accounting fees. I might add a lot of the small business entities rules have changed in the 2013 financial year,
thanks INXS, I just still kind of doubt the ATO would let me get away with claiming that I'm in business if it gave me any kind of tax advantage. Perhaps like some suggested I might still have to technically declare my income in the business section of my tax return but I doubt I can get any extra tax advantage out of this.
The ATMs are a passive investment, I don't do anything with them day to day, just get my cheque from the management company once a month. Not really a business by anyone's standards. If they could be declared as a business for further tax advantages, then many more people would be doing it, they are after all an investment that any mum or day investor can do.
The ATMs are a passive investment, I don't do anything with them day to day, just get my cheque from the management company once a month. Not really a business by anyone's standards. If they could be declared as a business for further tax advantages, then many more people would be doing it, they are after all an investment that any mum or day investor can do.
So I rang the ATO today trying to get a definite answer as to where on my tax return I should declare my income and where I should claim my deductions in relation to my ATMs.
Spent about 45 minutes on the phone, got transferred and escalated a bunch of times, got transferred from the "business" guys to the "individual" guys numerous times.
In the end they are going to call me back when they figure out where on my tax return the depreciation and interest deductions should go. They eventually decided that the income should be declared under "Other income" as I'm not really "in business". They decided my income counted as "comissions" as I get a percentage of every ATM transaction, but I'm not in business as the ATMs are held in my own name, I don't have an ABN and it's a passive investment.
Spent about 45 minutes on the phone, got transferred and escalated a bunch of times, got transferred from the "business" guys to the "individual" guys numerous times.
In the end they are going to call me back when they figure out where on my tax return the depreciation and interest deductions should go. They eventually decided that the income should be declared under "Other income" as I'm not really "in business". They decided my income counted as "comissions" as I get a percentage of every ATM transaction, but I'm not in business as the ATMs are held in my own name, I don't have an ABN and it's a passive investment.
You never ring the ATO for tax advice! (sad but true). The fact you own the ATM's and get a commission from them surely mean's you are in business. There are many other businesses that operate the same way. The fact you don't have an ABN at the moment mean's nothing. You can apply for one. Go and see an Accountant.
