Hi everyone. I have a question regarding what I can claim as a deduction for my photography business. I was given money from a family member to help pay for startup costs – mostly for equipment and insurance to the value of about 20K. Am I able to claim this on my tax return if this was purchased with money loaned to me by family?
Yes. If the money was yours (whether gifted to you or lent to you) and with that money you acquired business assets then subject to the tax depreciation regulations you can claim part or potentially all of those items. If you are registered for GST and if you paid GST when acquiring those items then you may also be eligible to claim back those GST credits.