Home – New Forums Money matters oDesk – Claimable on Personal Tax?

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  • #990918
    Mr Software
    Member
    • Total posts: 14
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    Hello,

    I have seen posts on Flying Solo mentioning oDesk outsourcing is tax claimable for a business. That’s fine and makes sense. My situation is slightly different.

    I use oDesk to hire software developers and graphic artists for personal projects I am working on. I hope one day in the far future to launch my software but right now I don’t have a company or ABN.

    Do you think I can claim back oDesk costs on my Personal Tax?

    Thank you

    #1179126
    Dave Gillen – Former FS Concierge
    Keymaster
    • Total posts: 2,566
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    Hi Mr Software,

    Welcome aboard the forums!

    It sounds like a pretty clear NO at the moment. Just like I can’t claim the expense of having someone fix my lawnmower unless I active use the lawnmower to earn income in a business that’s registered.

    What you would need to do is register your business (get an ABN) then claim the expenses as setup costs for your business. Then they can be counted against any profits your business makes, if it ever makes a profit.

    If it doesn’t ever generate income, then you won’t get any of your expenses back, but getting an ABN now will at least give you the option.

    Hopefully some of our accountants will drop in to clarify or improve on my explanation.

    Good luck!

    Dave

    #1179127
    Mr Software
    Member
    • Total posts: 14
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    Hi Dave,

    Thank you for your reply.

    You make a good point with the lawnmower fixer analogy. It sounds like my next step is to register a new business so when I do eventually launch my software at least I can reclaim my spending.

    Thanks for the advice.

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