Can I tax deduct my stock?

[1orion2many]

I got my ABN as a sole trader, not in context to a specific business. That was the same year that ABN's appeared, so my memory is a bit hazy.

I have since registered a Victorian business name for my software business, but state business registrations are really just aliases. So, I'm still <insert my name here>, but in Victoria, I'm doing business as <insert business name here>

As far as the 5,000, it's more like 4,800 to date, and Games of Deception was about 20% of that. Hey, it's my first year! Leave me alone!

Yes I'd be embarressed to, only a measly $4800

[jaydisc]

I can't believe you spend $5000 a year on scalping collecting trading.

Yes I'd be embarressed to, only a measly $4800

Care to provide any comparative figures, Gentlemen?

[MV75]

And don't you have to prove they're losing value? What do you compare them to? Sales at kmart?
________
HAWAII MEDICAL MARIJUANA

[roller]

if they can give druggies a legal place to shoot up then surely Jossier Jaydisc can get some tax back

[Tober]

Care to provide any comparative figures, Gentlemen?

I don't think I go over $1200 during any given year. And I only collect technical transforming toys for the most part.

I probably should get a job...

[autobreadticon]

i am not 100% sure but i remember reading that u can claim deduct eductional expenses for your children on your personal income tax form

[Burn]

For shame on Dirge for not remembering where I work ...

I don't have the fancy papers, but i've worked for an Accountant for 11 years. So here's the deal.

Your "stock" won't be a straight up deduction. As you still have it "on hand" you have to put it in as "closing stock". Basically it's Sales - Purchases + Closing Stock.

So if you sold $1000 worth, bought $4000 worth, your closing stock is essentially $3000. That's at the cost price level. You can also use the market value, ie, what you intend to sell the remainder for which may be $5000.

However all that may be pointless depending on your other income.

If you were on wages and earning more than $40,000 you wouldn't be able to claim any losses unless your sales were over $20,000.

However as you're a sole trader that won't be an issue as at the end of the day, all business related income and expenses are lumped together.

In other words, you could have seperate Profit and Loss statements for your software business and collecting business, but once you do the tax return they're combined.

At the end of the day though IF you were to be audited I would imagine the ATO would take one look and regard it as nothing more than a hobby and disallow it.

Your Accountant however may see things differently so any advice I give here may be different to what they offer. Neither is right, neither is wrong, it all comes down to how well you cover it up so the ATO doesn't see it.

[Burn]

i am not 100% sure but i remember reading that u can claim deduct eductional expenses for your children on your personal income tax form

That's being introduced for the 2008 tax year. Not quite sure how much you can claim though, still waiting on the tax pack for that stuff.