How do I claim a deduction for my business start-up costs?
By administrator | 4 April 2018
There are many ways that someone can go into business. These include buying an established business, buying into a franchise business, or starting a business from scratch and building it up over a period of time.
When a business is started from scratch, unless it is incredibly successful from the very start, the owner must find a way to finance the loss as a result of the establishment and running costs exceeding the income generated.
Where the owner decides to fund the set up of the business using finance, a tax deduction can be claimed for the interest and other borrowing costs related to the finance, thus increasing the loss.
If a business cannot pass any of the non-commercial loss tests, the most common being having income turnover of more than $20,000, the loss cannot be used to reduce other income earned but must be carried forward until one of the tests can be passed. Read moreMax Newnham - Brisbane Times - 3 April 2018
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