{"id":44650,"date":"2023-10-20T15:37:26","date_gmt":"2023-10-20T15:37:26","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/can-i-claim-business-expenses-for-my-fledgling-start-up-on-my-regular-job-tax-form-startupsmart\/"},"modified":"2023-10-20T15:37:26","modified_gmt":"2023-10-20T15:37:26","slug":"can-i-claim-business-expenses-for-my-fledgling-start-up-on-my-regular-job-tax-form-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/can-i-claim-business-expenses-for-my-fledgling-start-up-on-my-regular-job-tax-form-startupsmart\/","title":{"rendered":"Can I claim business expenses for my fledgling start-up on my regular job tax form? &#8211; StartupSmart"},"content":{"rendered":"<p><b>I have a business registered under my name.<\/b><\/p>\n<p><span id=\"more-7690\"><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>However, I have no clientele as yet, therefore no income, but have outlaid money for insurance and advertising.<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><b>Can I claim it on my &#8216;normal&#8217; job tax form, as I am also employed?<\/b><\/p>\n<p>&nbsp;<\/p>\n<p>The ATO has the following strict rules that have to be passed in order to offset your business losses against your normal income.<\/p>\n<p>&nbsp;<\/p>\n<p>If you can answer yes to one of the following then you can offset those losses against your group certificate income:<\/p>\n<ul>\n<li>Your business is a primary production business or a professional arts business and you make less than $40,000 (excluding any net capital gains) in an income year from other sources.<\/li>\n<\/ul>\n<ul>\n<li>Your loss was solely due to a deduction claimed under the small business and general business tax break.<\/li>\n<\/ul>\n<ul>\n<li>The ATO allow you to offset the loss under a Private Ruling based on your circumstance.<\/li>\n<\/ul>\n<ul>\n<li>Your income for non-commercial loss purposes is less than $250,000, and either your assessable business income is at least $20,000 in the income year; the business has produced a profit in three out of the past five years (including the current year); the business uses, or has an interest in, real property worth at least $500,000, and that property is used on a continuing basis in a business activity (this excludes your private residence and adjacent land); the business uses certain other assets (excluding motor vehicles) worth at least $100,000 on a continuing basis.<\/li>\n<\/ul>\n<p>I&#8217;m assuming your business is not a primary production business and you have not requested a private ruling in the following to help you track through these questions.<\/p>\n<p>&nbsp;<\/p>\n<p>So firstly, your income from your normal or group certificate income has to be under $250,000 before we can go any further. If you pass this, we move onto the next question.<\/p>\n<p>&nbsp;<\/p>\n<p>Did your business turn over $20,000 or more for that current year? If you answered yes and all your expenses from the business create a loss, then you can offset this loss against your normal income.<\/p>\n<p>&nbsp;<\/p>\n<p>If you can&#8217;t answer yes, then the loss from your business will need to be carried forward to next year until you make a profit and use this loss to offset that business profit or until you pass this test.<\/p>\n<p>&nbsp;<\/p>\n<p>If you said no, you can go to the next questions to see if you can pass these tests. If you can&#8217;t, then your loss will again need to be carried forward to future years.<\/p>\n<p>&nbsp;<\/p>\n<p>Remember you only have to pass one of the four above and not all of these tests.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I have a business registered under my name. &nbsp; However, I have no clientele as yet, therefore no income, but<\/p>\n","protected":false},"author":1,"featured_media":59146,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/44650"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=44650"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/44650\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/59146"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=44650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=44650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=44650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}