Home – New Forums Money matters new appliances ? can claim as an expense.

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  • #966287
    gerri
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    Hi

    My B&B business is slowly growing. I began it about 7 years ago. I did not keep a record of start-up costs.

    If I buy new sheets, new electric jug can I claim the cost as an expense.? I realise this is a question for my accountant but I’m hoping someone here may be able to answer my question.

    I am using the ATO e-record and finding it very useful. My income from the B&B is very small, after expenses probably less than a couple of thousand. I am not registered for GST.

    Thankyou in advance

    Gerri

    #1017251
    Brendan the Bookkeeper
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    Gerri,

    As a B&B buying new sheets and new kettles would seem to be a weekly occurence, depending upon the type of people that frequent your B&B!

    But to answer your question – new sheets and new kettles for use inside your B&B and for your customers to utilise all form part of your running expenses for your business. Without bedsheets where would your customer sleep?

    Not being registered for GST is not a problem at all, just record the expenses as usual in E-Record and when E-Record automatically calculates the GST on the expenses, delete the GST amount calculated. This leaves it at the GST Inclusive amount with which you’ll be wanting to claim as a deduction on your tax return at the end of the year.

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