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Chrisc
13-07-2012, 04:43 AM
Hi all
Just in the process of getting things sorted to get into the game as they say.
I have a shift work job working 2 days then 2 nights and then have 4 days off,so
i thought i'd start small and build on it as time goes by.
Became a member a month or so ago.The info on the site is fantastic..
I do have one question for my tax person but thought i would ask here anyway.
If you have a job as i do and want to start up your mowing business and need to buy equipment ,can you use those purchases for equipment,insurance and so on as a deduction against you regular income from another job or does it need to be directly related to your mowing business???.
Hope that makes sense..
By for now,Chris

Kathryn
13-07-2012, 06:44 AM
i cant answer tax questions. but welcometo the forum and good luck with your business

LGGF
13-07-2012, 06:50 PM
Welcome Chris,

Don't quote me, but I was in a similar situation, the short answer is yes, however, your lawn mowing business needs to turnover a certain amount over the financial year, I think my accountant quoted $20k.

Hope this helps and as you will read throughout this forum, get yourself a good accountant.

Chris B
13-07-2012, 07:13 PM
im pretty sure it will only come off the business income but you can carry the loss forward to the next year to reduce future tax payable (eg. 5k mowing income, 15k start up expenses = 10k loss to come off next years mowing income)

greenhorn
13-07-2012, 11:24 PM
Don't think so, you have to claim work related, ie present job, but maybe new venture could owe you, like a loan, plus depreciation,?etc.
Does ILMCOA have any accountants that want to put in their 2 bobs worth?

PhilG
14-07-2012, 07:54 PM
I started off the same way. I was a postie and did a couple of lawns after work and on Saturdays. I am fairly sure that any loss due to equipment vehicle etc came off my total taxable income. Things may have changed as that was 20 years ago. Check with accountant.