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June 30, 2015 at 3:03 pm #1185034Up::0
Ok thank you Mr Tax, that is great to know. Since I have only been trading for 4 weeks and I have $60,000 worth of tax deductible expenses from my start up, can I report a loss and claim this on my next financial year? or do I have to do everything within each financial year? Sorry if I am not making sense as this is all very new to me.
Thank you
June 30, 2015 at 12:07 am #1185032Up::0Thanks for the reply Mr Tax, I have taken a small wage about $2000 can you explain to me the benefit of reversing it? Ok so my first year is a loss and if next year using the example above $58,000 if I do not profit above that amount to cover initial start up I would still be losing is that correct?
Thank you
May 6, 2015 at 2:39 pm #1182489Up::0Hi James
Thank you for your reply
Oh ok so even if I do not choose to withdraw any of the profits for the financial year and I net profit $100,000 and choose to put money back into the business I will still be taxed on my net amount is that correct? If you don’t mind may I ask what is the tax rate for businesses?Thank you so much
September 22, 2014 at 1:37 am #1172184Up::0ShellysBookkeeping, post: 199942 wrote:Hi Gerry,
It is basically the same, it is easier to keep track if you deposit a sum of money into your business account and make purchases from there. Option b would be the preferred method, but most small business make occasional purchases with their own money.
Shellyhttp://www.ShellysBookkeeping.com.au
Shelly@shellysbookkeepingHi Shelly,
Thank you now I understand, if I did make the purchase under my own pocket how do I apply it to the business at the end of the financial year do I just keep the receipt?
In response to the GST no I havn’t applied yet. I need to some serious number crunching
I have only received my ACN at this stage and still have to apply for ABN and TFN. I have not started trading yet so if I apply for ABN & TFN now and I deposit capital into the business account will I get taxed on the capital amount? Or does tax and gst only apply once i begin making my first dollar?
Sorry if these a dumb questions, I really appreciate your help.
Thank you
GerrySeptember 21, 2014 at 11:24 am #1172182Up::0ShellysBookkeeping, post: 199926 wrote:Congratulations on starting your business. I certainly would not have had the courage to do so at 21. In reply to your question, it depends on your company setup to an extant. The simplest way is to buy it using your company bank account. If you do buy it using your own money, then it becomes part of the owners/shareholders equity in the business.
You won’t pay tax on purchases, they can generally be claimed as deductions or depreciated, although if you are registered for GST you can claim back the GST credits.
Have you registered for GST? If you expect your sales to exceed $75k /yr you will need to register.
I would speak with an accountant about what expenses you can claim for your business.
Good luckhttp://www.ShellysBookkeeping.com.au
Shelly@shellysbookkeepingHi Shelly
Thank you so much for replying, just one question Shelly so I can get my head around owners/stockholders equity,
so if a) I buy the juicer machine with my own money it would count as owners/stockholders equity? would this scenario be the same as,
b) If I was to deposit my own money (capital) into the business account and than pay for the juicer machine through the business account ?
What is the difference between doing a) and b) is it basically the same thing ?
Thank you so much
GerryJuly 4, 2014 at 5:50 am #1167372Up::0NickKaro, post: 193900 wrote:Hi GerryWelcome to the forum.
Some questions which will assist in formulating a high-level answer (although I suggest briefing a registered tax agent/lawyer to obtain detailed advice).
Are you the only shareholder of the company? If so, is the company paying you any dividends or wages?
Is the company selling anything in Australia?
How is the profit getting to China?
Regards
NickHey Nick thank you for your reply yes my business partner and I are equal 50-50 shareholder of the company. No we are not receiving any dividends or wages as we are still working in full time jobs here in Australia to support ourselves and basically invest our savings into the business.
No we are not selling anything in Australia.
The money we make from our 1st production we send it from the business account in Mexico to a factory in China to manufacture productions.
Thanks very much for replying Nick
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