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vinyls and tax stuff

just a quick question to people who purchase loads of vinyl such as myself..

do anyone of you write them off as business expenses?? and if so, what is required to do so..

can anyone of you give me some insight in what might be required and what are the benefits of doing so..

thanks

yes I did this year, as long as u have an ABN? and have made some money from djing??

My tax man was a cool hip young guy in the scene so it kinda helped cause he knew what he was doing


Oh and the number 1 rule YOU ARE A PERFORMING ARTIST, you ENTERTAIN PEOPLE you dont dj

regardless of how much money you make? I thought it had to be over a set amount (6000)?

I offset all vinyl purchases against my other income so even tho I "lose" lots of money from DJing this loss is subtracted from my taxable income from my other jobs.

quote:

Originally posted by escee regardless of how much money you make? I thought it had to be over a set amount (6000)?

i didnt make that much, thats for sure


No no limit, but i do have a full time job which i also offset it from to bring my total taxable income down.


You dont have to submit a BAS if you earn under $50,000 from the business.

Man i claimed so much this year, records, laptop, studies, travel to college etc... was mad, got a nice return

Only the records were put on the business, the rest were work expenses. But next year i have a CDJ & Mixer to put on the business expenses

You have a TFN which is what your income is on.

You have a ABN for your DJing.

If you earn more then $5400 a year on your ABN, you can then start claiming tax back on what you were taxed.

There ABN isn't linked to your TFN, they are two seperate items. So you can't offset your TFN tax with your ABN expenses.

It's like working full time, and being taxed $10,000. If you buy $10,00 worth of stuff on your ABN, you can't claim it against your full time wage, that doesn't make sense to anyone, let alone a tight arse liberal government.

Muli, you're man's dodgy if he's linking them together (that's 3 different tax agents, two of which I paid to see).

--djway

so legally you cant do it unless you earn more then 5400

okay

Hmmm, i dont know how u have done it Muli

I had a discussion with my financial advisor about this very thing in July but he said I "legally" had to turn over in excess of $20,000 from djingper annum in order to register as a business and to offset the cost of vinyl. It's also illegal to operate a business at a loss fore more than a couple of years ( those with the exact period of time please inform me here as I'm not sure)

I asked about about offsetting it from my personal income through work and he said that anything I would claim I actually would have to payback in the case of an audit

My guy could be wrong, (he is normally very good) but you may want to look into it a little more closely in case I'm not.

i figured as much
it all sounded a little too good to be true

so whilst you may have gotten away with it muli
me reckons that if you get audited it could be

'goodnight muli'

hey i have nfi how he did it, but its all legit.

He used my ABN, it shows in what was submitted to the tax dept, if i didnt earn enough they would have seen it and followed it up.

The only thing i put against my Djing was records, the rest was work expenses.

My tax agent is no no0b he works for a firm in the city and he has clients like executives at news limted, AMP, westpac, all massive clients.

He made sure i gave him copy of all receipts so if he was asked by the tax office he could show them everything. I tried to claim some extra things which he said were not allowed.

Im not sure, but i think being a performing artist allows you to run at a lost and claim in back. Do a search on it.

Also a lot of dudes at ITP or HR-Block have NFI when it comes to DJ expenses.

quick search brought this up

http://www.ato.gov.au/individuals/c...ntent/35515.htm

http://www.ato.gov.au/content/downloads/NAT2325-04.pdf

quote:

Originally posted by muli quick search brought this up http://www.ato.gov.au/individuals/c...ntent/35515.htm http://www.ato.gov.au/content/downloads/NAT2325-04.pdf

That sounds really good man but are you sure you can get away with the classification of peforming artist? ( serious question )

Nah I've read all the tax guides and it's legit as far as I can tell.

Just found these muli. i think this is what my advisor was talking about....


http://www.ato.gov.au/businesses/co...ntent/25307.htm

and click the "non commercial losses" link.

You'll find that you are actually operating a "hobby" not a "business" by ATO classification and as such are not able to claim deductions from your personal income.

i dont understand. surely the ATO cant have it both ways; if you (in theory) have to pay tax on the income you earn from DJing, why wouldnt you be able to offset DJing expenses against that income?

haha. maybe this is why i havent submitted a return in half a decade

I'm not exactly sure but I think if you had an ABN and DJing in some way or another helped you business, then you could claim it.

For example if you actually had a mobile DJing business then i'm quite sure records would be tax deductible.

well i cant get paid for gigs if i dont have an ABN, if i have an ABN im supposed to put some sort of return.

without records i cant do my job, i need them for the job, therefore can claim it.

I asked a few semi-pro djs around town and they all go under the performing artist alias, as far as im aware thats how all the djs do it inclduing the big names and its fully legit.

Its like me playing at weddings, i could claim that equipment back, why not club gigs? Just because it happens to be a hobby as well as earing a bit of extra money on the side.

I have to invoice all gigs i play, and keep all receipts, its legit as far as i can see.

quote:

Originally posted by batemanscott Just found these muli. i think this is what my advisor was talking about.... http://www.ato.gov.au/businesses/co...ntent/25307.htm

from this link.


As such, he would not include the amounts he received in his income tax return. Consequently, he cannot claim any expenditure he incurred in relation to his hobby against any other income he earns.


i DO include the amounts i earn, so there for CAN claim.

Try find out a tax agent who deals with people in the business and ask them.

quote:

Originally posted by muli well i cant get paid for gigs if i dont have an ABN, if i have an ABN im supposed to put some sort of return. without records i cant do my job, i need them for the job, therefore can claim it. I asked a few semi-pro djs around town and they all go under the performing artist alias, as far as im aware thats how all the djs do it inclduing the big names and its fully legit. Its like me playing at weddings, i could claim that equipment back, why not club gigs? Just because it happens to be a hobby as well as earing a bit of extra money on the side. I have to invoice all gigs i play, and keep all receipts, its legit as far as i can see.

But unless you're making over $5400 on you're ABN your not paying tax on the money anyhow, so how can u claim something back??? It's just wrong....The bigger guys would make something to claim back on, so I can understand that.

"To be able to claim business deductions you must be carrying on a business. If you aren�t carrying on a business, your activities may in fact be a hobby � in which case you don�t declare the income and you can�t claim deductions for expenses." (same doco)

Reading about Non-commercial losses, the provisions do not apply if:

"or a professional arts business and you make less than $40,000 (excluding any net capital gains) in an income year from other sources, or"

It's going to be your tax man going down if shiat hits the fan, so you got nothing to worry about...I tried a few different tax guys and got told it couldn't happen...Any tax agent should be up to speed with most facets of the ATO; it's their job to be on top of new awards, rulings or conditions, regardless of how common or rare.

--djway

I know you don't pay tax unless you're making over $5,400 (or whatever it is) but if you're paying tax on other jobs you can get that back. Guess how much tax I paid last year?
$0 -Just got my tax return deposited into my account by the ATO so it must be satisfactory to them.

maybe ill get my tax guy on here to answer (serious)

that might not be such a bad idea, cos the joy of getting a tax refund is generally not as much as the pain if you have to give it all back after you've spent it.

haha awesome muli

i dont see why everyones doing it the legit way.. your tax return is supposed to be a 'little' exaggerated.

now that i have my own business up and running, im sure to claim every single little thing towards the business. if i get audited, then so be it.

but hey, wheres the fun in doing things the 'legit' way.

you've got half the population eating up your tax money while all they needa do is lodge dole forms, then you got the politicians who take fun holiday trips around the world with your hard earned tax dollars.
so who's to say you don't deserve some if not all of your hard earned cash back

quote:

Hey Daniel how are you mate? Yeah seems like they don't know what they are talking about? A lot of what they are arguing about is based on interpretation and I think you have a very strong case to argue that you are running a business in your own name that will expand and eventually make a profit. If you were to continue making substantial losses for a number of years the Tax Office may come back and review whether you are really running a business i.e. your initial start up years will always create a loss but later years should make profits. Again this comes back to your intention. The main issues to consider once again: - Are you running a business? - Arguable at this stage as only starting up - Are you a performing artist? - Yes - Do you pass any of the non-commercial loss tests? - Yes

the thing in that quote is the bit that you have a decent expectation of eventually turning a profit. I don't think anyone would question that you can offset the cost against dj-income.
claiming against other income this dj-business must be able to get into the black in the not too distant future.

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