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Doing Assignment-business income/draw down

Discussion in 'Money matters' started by Brownie001, Oct 13, 2020.

  1. Brownie001

    Brownie001 Member

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    Hello, hI have a question.
    Is it better to maximise claims from a small partnership or the owners to draw down and then claim expenses against that. eg:
    gross earnings $20000
    Less expenses $5000
    = $15000
    Owners 60/40
    Owner 1 9000
    less deductions: work from home, ph & Internet, gifts etc 2000
    = 7000.

    or does owner 1 include work from home, ph & Internet, gifts etc as costs to the business.

    gross earnings $20000
    Less expenses $7000
    = $13000

    Any help would be appreciated.
    Thanks, Mark
  2. Paul - FS Concierge

    Paul - FS Concierge Administrator Staff Member

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    Hi And Welcome to Flying Solo @Brownie001 . It is great to have you!

    Thank you for joining our community and posting.


    Hopefully some helpful members will be along soon with some advice to point you in the right direction.

    Cheers
  3. Brownie001

    Brownie001 Member

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    "Thank you for joining our community and posting.
    Hopefully some helpful members will be along soon with some advice to point you in the right direction."


    Thanks Paul,

    Been looking around. Great site!
  4. Brownie001

    Brownie001 Member

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    Hi, any clues on this. This is due Friday.

    Any help would be appreciated.
  5. LucasArthur

    LucasArthur Renowned Member

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    Ask your teacher?
  6. Brownie001

    Brownie001 Member

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    Not so easy to get hold of them these days
  7. Paul - FS Concierge

    Paul - FS Concierge Administrator Staff Member

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    The simple answer from a NON-Accountant is to calculate Gross Profit.

    Then deduct all deductible expenses eg, working from home would only be partially deductible in most cases.

    The ATO website has answers around what a business expense is.

    How to pay yourself can have major tax implications and can get complicated quickly so I will not attempt to give advise.

    When dealing in any form of accounting, it is important to become familiar with Accounting terms commonly used and not mix them up with with common language eg, you don't make a "claim". You DO deduct business expenses as part of arriving at Nett Profit.

    Good luck.
    Paul
  8. Brownie001

    Brownie001 Member

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    Thanks Paul,

    Regards,
    Mark
    Paul - FS Concierge likes this.

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