Possible tax deductions

From: Dale Gatherum-Goss


Hi

I have attached a list of "unusual" potential tax deductions that you might find helpful. Be careful, as some require certain conditions to be met before the expense is a tax deduction.

Lastly, as we have been discussing recently under Trusts, some of these deductions are only so when they are paid from a trust or a company.

I hope that this helps.

Dale
 
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Attn: Dale re: those 'sex toys

Reply: 1
From: Scott Elsom


I liked the tax deduction for 'sex toys', but I can't work out how it would fit into my line of work though :)

I have a question regarding travel expenses (or milage, in particular).

If I travel in my car on behalf of my employer (that may be my wife, my company/Family Trust or my boss), what is an acceptable milage rate that I can claim from them?

A previous employer of mine, used to pay a rate of $0.545 for each kilometer travelled in your own vehicle. This figure is greater than the ATO recommended figures. Is this acceptable, or should you stick to the ATO limits?

My little 10 yo Dihatsu Charade costs nowhere near $0.545 cents per km to run, so this would appear to be a tax effective way to transfer $'s from a separate entity to me. It would only be a few thousand $'s per year...but every bit helps!

I've got this on my list of questions for next time I am speaking to my Accountant, but I thought I'd get a second opinion from you as well.

Regards

Scott
 
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Attn: Dale re: those 'sex toys

Reply: 1.1
From: Dale Gatherum-Goss


Hi Scott!

A gift to an employee to say thank you for a job well done etc etc is grounds for a "toy" so long as the cost is under $100 and the gift is given infrequently.

This is regardless of your business or profession.

Why would you do this?

The idea is to have the business pay as many of your personal expenses as possible, before tax, so that you do not need to spend as much of your money and so that you reduce your taxes using the system that is in place.


As for the car . . . there is no set rate. Each business is free to pay a car allowance of whatever they like. However, if the allowance is greater than the expense that you can claim, then, you might find yourself with a small tax bill at the end of the year.

Does this help?

Dale
 
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Attn: Dale re: those 'sex toys

Reply: 1.1.1
From: Scott Elsom


Thanks Dale...question answered.
 
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Reply: 2
From: Robert Forward


Thanks for that list Dale.

I really like the Guard Dog to protect the office. Even if it's a home office I need a Guard Dog, and it's actually a nice dog that the kids can get to play with too.

I Love It...

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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Reply: 2.1
From: See Change


MMM dogs as tax deductions

so with regards to the dog , I assume you'd be able to claim food and vet bills

Does the dog have to be threatening or would a small miniature schnauzer with the ability to lick intruders to death be considered suitable ...

and could my trust , which stores records at my house, purchase the dog off us...and would the purchase cost take into account initial purchase cost, previous maintainence costs and training ( I assume training would also be tax deductible , they do have live in training which could coincide with holidays ... )

and the kids have been thinking we should get another dog for "added protection"

see change

see change
it's better to be guided by your dreams than your fears
 
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Reply: 2.1.1
From: Duncan M


You may incur Capital Gain Tax on the sale of the dog if you've sold it for
more than you bought it :)
 
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Reply: 2.1.1.1
From: Owen .


What if the dog dies? Can you scrap the depreciation on it? :eek:)

Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
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Reply: 2.1.1.1.1
From: See Change


Duncan , if you the assume the dog as an asset, then all the costs incurred in holding that asset would be added to the base price with regards to CGT ( but that would go against my thoughts in the next paragraph , Dale , help )

Owen , Computers can be written off over a short period of time , maybe you can depreciate the dog over it's life span , worked out according to average life spans for that breed. ( generally big dogs tend to live shorter lives so more depreciation ), if it goes to that big dog kennel in the sky , then could you claim the entire purchase cost as a replacement or do you write off the written down cost and claim again on your new "guard dog "

see change

it's better to be guided by your dreams than your fears
 
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Reply: 2.1.2
From: Dale Gatherum-Goss


Hi Sea Change!

Yes, if the dog is a guard dog, you can claim all the costs involved in maintaining that dog including vet bills and feed.

I normally insist on the dog being a "typical" size, shape and breed for a guard dog as we don't want to go too far out on the limb.

I'm glad you found this stuff interesting and that it has encouraged you.

Dale
 
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Reply: 2.1.1.1.1.1
From: Dale Gatherum-Goss


Hi

There is no CGT on the sale of the dog. Accordingly, we do not depreciate the cost price either regardless of how long the dog might live.

Be careful and continue having fun!!

Dale
 
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Reply: 2.1.2.1
From: Robert Forward


Next question then is

What is said dog is a "Prized Show Dog" that is also a "Guard Dog" and said dog replicates itself into "Small Dogs" that you can sell off for a profit.

Do you have to pay tax on this said profit??

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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Reply: 2.1.2.1.1
From: Duncan M


If the company director is sleeping with the dog can the company claim a
dependent spouse rebate?



-----Original Message-----
From: propertyforum Listmanager
[mailto:listmanager@bne003w.webcentral.com.au]
Sent: None
Subject: Possible tax deductions


From: "Robert Forward" <robert_forward@optusnet.com.au>

Next question then is

What is said dog is a "Prized Show Dog" that is also a "Guard Dog" and said
dog replicates itself into "Small Dogs" that you can sell off for a profit.

Do you have to pay tax on this said profit??

Cheers
Robert

The Sydney "Freestylers" Group Leader.



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Sim

Administrator
Reply: 2.1.2.1.1.1
From: Sim' Hampel


I think you may be barking up the wrong tree with that one Dunc.

(sorry, obvious joke, but needed to be said)

 
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Reply: 2.1.2.1.2
From: Paul Zagoridis


In which case Robert, the entire enterprise is best set up as a breeding business. Everything related to the care and upkeep of the animal (including % of residence) and salary of carers is deductible.

Worth even looking at primary producer incentives as well.

Paul Zag
Dreamspinner
The Oz Film Biz site is archived at...
http://wealthesteem.dyndns.org/
 
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Reply: 2.1.2.1.2.1
From: Jas




>
> From: "Paul Zagoridis" <paulz@bigpond.net.au>
>
> In which case Robert, the entire enterprise is best set up as a
breeding
> business. Everything related to the care and upkeep of the animal
> (including % of residence) and salary of carers is deductible.
>

bit of a push with only one animal. You need at least two to breed

Jas
 
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Reply: 2.1.2.1.2.1.1.1.1
From: Robert Forward


I thought she did Paul.

Doesn't Nella operate you????

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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Reply: 2.1.2.1.2.1.1.1.1.1
From: Paul Zagoridis


That's what I meant (smirk, blush)

To drag this post back towards on-topic...

Folks if you do plan to structure yourself to take advantage of this outrageously creative thinking, please document a commercial purpose for it.

The ATO's anti-avoidance provisions are wide ranging. So 1) have a commercial justification, and 2) eventually make a profit.

Hobby vs business issues will be the next big ATO bug-bear IMHO.

Paul Zag
Dreamspinner
The Oz Film Biz site is archived at...
http://wealthesteem.dyndns.org/
 
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