To claim business expenses or not?

Discussion in 'Accounting & Tax' started by Semaj, 3rd Nov, 2020.

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  1. Semaj

    Semaj Member

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    As a sole trader I am claiming business expenses and depreciation of an investment property to reduce my taxable income. But on the other hand by claiming expenses through the business this reduces my taxable income which lenders look at. At the moment I was wondering would it be better not to claim any expenses, pay full amount of tax without any offsets and have a better chance of getting a loan? Seems counterproductive at times to reduce tax which saves money but not being able to invest in property as taxable income is too low..
     
    Pingu1988 likes this.
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    it will take about a year for this to have effect.

    Best to seek credit advice from a broker
     
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    A property investor should always seperate investment net income form business net income.
     

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