Considering opening up new home/small business

Discussion in 'Starting & Running a Business' started by r3ckless, 10th Mar, 2016.

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  1. r3ckless

    r3ckless Well-Known Member

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    Hi All,

    I remember as a young kid around 12 years old, a family friend at a BBQ once told me, you'll never work harder for anyone else but yourself. This has stuck with me, and I want to give it a shot in opening my own business on the side of primary PAYG income that myself and my wife earns.

    What I would like to know is that potential deductions I am open too? ie laptop expenses etc, I'm more so inclined to know how I can have this business with deduction, that will co-incide with my race car. I would like to use the race car as a primary form of advertising as the sector I am looking at getting into is automotive... Would all expenses part of the car be deductible is what I want to understand.

    Cheers!
     
    r3ckless, 10th Mar, 2016
    #1
  2. sanj

    sanj Well-Known Member Premium Member

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    just a word of advice, tax effective strategies are always important to consider but you should focus on how you're going to make money from this business first instead of what the best way to spend a dollar to save 30c is.
     
    sanj, 10th Mar, 2016
    #2
    Xenia, Truly Exotic, beachgurl and 2 others like this.
  3. r3ckless

    r3ckless Well-Known Member

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    yep, totally understand it. ive been doing it for awhile and it is profitable, but looking to formalise it all, and see if i can claim expenses...
     
    r3ckless, 10th Mar, 2016
    #3
  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    I'm sure you can legitimately spend money on marketing, which might include sponsorship of a racing car.

    However, just be careful that you are actually running a business which is reasonably expected to generate a profit - if the ATO becomes convinced that you are merely attempting to structure your tax affairs in such a way as to avoid paying tax, they might take a dim view of your operation.

    Make sure your business passes the "duck" test.
     
    Simon Hampel, 10th Mar, 2016
    #4
  5. wylie

    wylie Moderator Staff Member

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    What is the "duck" test? Guessing "if it looks like a duck and swims like a duck, it probably IS a duck"?
     
    wylie, 10th Mar, 2016
    #5
  6. Simon Hampel

    Simon Hampel Founder Staff Member

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    That'd be the one. Basically - if the business looks like a business, acts like a business and is run in a business-like manner, then it probably IS a business and not a tax avoidance scheme.
     
    Simon Hampel, 10th Mar, 2016
    #6
  7. TMNT

    TMNT Well-Known Member

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    kudos

    I call it the PAYG mentality,
    unless you are very lucky or are have some amazing product
    thinking of what tax deductions are going to the best for your payg income means its completely the wrong mindset.

    like those people that ask "will I get annual leave when I start my own business?"
     
    TMNT, 11th Mar, 2016
    #7
  8. Shawn

    Shawn Well-Known Member

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    Automotive industry ay...
    I import cars from Japan & UK as a side business to, any tie-ups possible?!

    Hahah
     
    Shawn, 11th Mar, 2016
    #8
  9. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I think the answers to your questions are more likely to come from a good accountant after a very detailed discussion.

    You're looking for reasonably specific answers but the questions and information you're proposing are extremely broad. I imagine that car imports have all sorts of taxes and trade implications that most people on this forum aren't going to have a clue about.
     
    Peter_Tersteeg, 11th Mar, 2016
    #9
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