In This Chapter
Identifying allowable deductions
Claiming tax deductions
W hen you run a business, logic dictates that if more money is coming in than is going out, then you’re ahead. However, if more of the hard-earned stuff is going out than coming in, you could quickly find yourself with one big headache. Under these circumstances, two options are available to you: You can either seek professional advice, or simply shut up shop for good and go fishing!
Expenditure that you incur in earning business income may qualify for a tax deduction. In this chapter, I guide you through the legal ways you can claim a tax deduction and the different types of expenditure you can claim — all of which is going to help keep your business in the black.
You can use two methods to find out what is a tax-deductible expense: Get the Tax Office to compile a comprehensive list of every conceivable item you’re likely to incur, or use a general deduction formula (referred to as the general deduction provisions). If you choose the former option, you need to constantly thumb through a pile of books equivalent in size to your local telephone book — remember those? So, reason concludes the alternative method has more ...