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vinyls and tax stuff (pg. 2)
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| Antistatic |
| Nah I've read all the tax guides and it's legit as far as I can tell. |
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| 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
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. |
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| pkcRAISTLIN |
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 :eek: :eek: :eek: |
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| stamper |
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. |
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| 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. |
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| muli |
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. |
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| djway |
| 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 |
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| Antistatic |
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 :D -Just got my tax return deposited into my account by the ATO so it must be satisfactory to them. |
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| muli |
| maybe ill get my tax guy on here to answer :p (serious) |
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| tubby |
| 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. |
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| rez |
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 |
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| muli |
| 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 |
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