Hypothetically, my spouse cleans my IPs, mows their lawns etc. She has an ABN. I pay her $10,000 for her services over the course of the financial year.
Can I then claim the deduction for her cleaning, mowing etc services and end up being overall in the positive? Eg, pay her $10,000 for services she has invoiced me for, claim the $10,000 and get back my marginal tax rate (say 37%) so the family ends up with $13,700 come tax return time (the $10,000 she charged me for plus my tax refund for that charge). Also assuming this is the only income the spouse receives so she remains below the tax-free threshold.
Obviously some of that $10,000 in reality would be used for costs incurred but it still means that more money remains in the family. Is this a normal thing for people to do? Obviously the cleaning, mowing etc can be interchanged for all sorts of deductibles including accounting etc.
Can I then claim the deduction for her cleaning, mowing etc services and end up being overall in the positive? Eg, pay her $10,000 for services she has invoiced me for, claim the $10,000 and get back my marginal tax rate (say 37%) so the family ends up with $13,700 come tax return time (the $10,000 she charged me for plus my tax refund for that charge). Also assuming this is the only income the spouse receives so she remains below the tax-free threshold.
Obviously some of that $10,000 in reality would be used for costs incurred but it still means that more money remains in the family. Is this a normal thing for people to do? Obviously the cleaning, mowing etc can be interchanged for all sorts of deductibles including accounting etc.
