Tax Deduction

[FinalFantasy]

If I purchase a laptop and subscribe to the wireless internet, to use it to trade shares everywhere I go, can I consider that as costs incurred in the course of making my profits, and use the cost of the laptop+wireless internet fee as tax deductions????

Thanks

 

[GreatPig]

From my understanding...

The laptop should be depreciable, but not an outright deduction. Also, if you're employed somewhere and haven't bought the laptop yet, try and get it salary sacrificed from your employer, as laptops are FBT exempt and so you can effectively get it out of pre-tax dollars.

The Internet connection would likely need to be pro-rated on a business/private use basis. If it was nearly all business use, then I think it should be fully deductible. What you might need as proof of that in an audit though, I don't know.

Check with your accountant.

GP

 

[Pager]

Look at renting a Laptop, it then becomes tax deductable if used for work,trading.

I got mine from dick Smiths through rentsmart and although it works out at over twice the outright purchases price over the term of the rental agreement, i dont have to outlay any funds to buy, i can upgrade after 12 months i think and the rental fees are tax deductable.

cheers

Pager

 

[GreatPig]

although it works out at over twice the outright purchases price over the term of the rental agreement

Would that be cheaper though than just taking out a personal loan to buy one?

Again, if it's for business use, the loan interest should be deductible.

GP

 

[FinalFantasy]

But is personal trading considered for 'business use'?
I am not employed at all at the moment.

 

[GreatPig]

I'm not sure, but I think anything used to generate taxable income is acceptable.

However, if the income is less than the deductions, or not much higher, you may be scrutinised more closely with regard to how much of the laptop and Internet use is private rather than related to earning an income.

GP

 

[FinalFantasy]

thx guys