Are business expenses (as a small business sole trader) tax deductible from income from a seperate full time job as an employee?
and same question, but for property expenses, can the expenses/deductions be deducted from your income as an employee, or only off income earned from property??With sole traders, income and expenses are just added to other income. same with property. All income is added up and all expenses deducted. But the ATO is wary of business that run at a loss.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If your business makes a loss, you can only offset it against other income if you pass the non-commercial losses test. (Turnover over $20,000, profits in 3 of the last 5 years, etc) Otherwise, a business loss must be deferred until you make a profit.
thanks. For anyone interested in an official answer, after discovering the non-commercial losses test information thanks to above posters, I found:
http://www.ato.gov.au/businesses/content.asp?doc=/content/13280.htm
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