All Topics / Legal & Accounting / Tax return and business

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  • Profile photo of PosEnterprisesPosEnterprises
    Member
    @posenterprises
    Join Date: 2006
    Post Count: 290

    Hi can anyone give me some quick advice on business expenses.  My wife was going to start a business and spent a bit of money on training and education for the business. During the financial year she did not proceed with the business due to some unforseen circumstances.

    Does she need to lodge a tax return and can she claim expenses without earning any income during the 2007/2008 financial year?

    thanks

    Profile photo of IP FreelyIP Freely
    Member
    @ip-freely
    Join Date: 2008
    Post Count: 353

    No the cost involved in learning about the business are not deductible unless you are already involved in the business hence a legitimate business expense. No income was generated/derived

    Profile photo of erikkoerikko
    Member
    @erikko
    Join Date: 2008
    Post Count: 12

    im also planning to put up a business and i want to ask if asking a help from financial advisor can help me cut off my expenses?

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    If the FP is part of the cost of setting up the business, then it might be capitalised. Advice recieved for a going concern might be classed as an expense.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    i beleive you cannot claim education expenses for future work. The expense has to be related to improving your skills in your current job. But if the business was set up as a trust or company it may be possible for that entity to claim.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 5 posts - 1 through 5 (of 5 total)

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