Home – New Forums Money matters Can this be a business expense?

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  • #983743
    FastLaner
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    There is a website in USA called Diamond Candles, they are fantastic. Their product consists of a candle but within each candle is a ring that could be worth between $10-$5000.

    Is the ring a business expense? I’m intrigued by the whole process and how they go about offering such a product, if it is a business expense, does that mean they could put any item they want within the candle regardless of value?

    What do you think?

    #1143988
    MH08
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    Australia and United States have very different laws when it comes to tax.

    In the United States depending what structure your under everything is deductible. This is why you can be shell company’s with shares in place where you can implement your company and have it running on the NASDAQ in the pink OTC (Over The Counter). In Australia this outlawed (small insight into how companies work).

    Australia, it would fall under a marketing expense, the business would have to be able to justify it can afford such a marketing expense constantly. Meaning, you couldn’t have a business making $250k a year, with over $4M worth of diamond rings hanging around in 20,000 candles, ATO will be knocking on your door within the hour.

    But again it will all depend the type of business itself.

    #1143989
    FastLaner
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    MH08, post: 164947 wrote:
    Australia and United States have very different laws when it comes to tax.

    In the United States depending what structure your under everything is deductible. This is why you can be shell company’s with shares in place where you can implement your company and have it running on the NASDAQ in the pink OTC (Over The Counter). In Australia this outlawed (small insight into how companies work).

    Australia, it would fall under a marketing expense, the business would have to be able to justify it can afford such a marketing expense constantly. Meaning, you couldn’t have a business making $250k a year, with over $4M worth of diamond rings hanging around in 20,000 candles, ATO will be knocking on your door within the hour.

    But again it will all depend the type of business itself.

    That makes perfect sense. I’m assuming the company would be doing it this way with something like 1 in 20 candles having an expensive ring in it or something like that.

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