Home – New Forums Starting your journey Tax deductions on primary income whilst working as a sole trader

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  • #972435
    bth
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    Hi Everybody,

    First post here, this forum is a wealth of info :). Anyway to my question.

    I work full time and am in the process of starting up a small photography business. Business plan 98% done and waiting to secure funding to start the ball rolling.

    At tax time (before and after I start earning an income from my business), am I able to make tax deductions from my overall income which includes primary and secondary income. For example;
    Primary taxable income is say $50000
    Business income is $3000,
    Total of $53000 taxable.
    Can I make tax deductions on the $53000 which include business deductions and well as the usual deductions for the primary income.

    I’ve looked at the ATO site and Business.vic sites and have had little luck. Anyone out there able to assist or send in right direction.
    Thanks

    #1056100
    StellarScott
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    Hi bth and welcome

    Business expenses are deductible against the business income only so if your business is making a tax loss you cant apply those losses against your personal income

    Also there are rules for ‘expenses associated with commencement of business’ which are only deductible over 5 years. Recommend you see a good accountant who can advise further on this

    Good luck with the business and securing the funding

    #1056101
    ray_223
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    yes, see an accountant!

    Some losses from a previous year can be carried forward into your next taxable year – but I don’t know the finer details.

    #1056102
    MelissaN
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    And to offset losses against assessable income, the business needs to have over $20000 net income (sales), otherwise, they are deferred to future years.

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