Around June each year, we are normally inundated with messages and advertisements telling us how we can save this tax time.
You may have heard someone at the BBQ trying to justify their latest purchase by saying something like “I was told I can write that off in my tax” or “Sur I can claim that back”. Well kind of..
The truth is that you get a tax deduction at your marginal tax rate. That could be anywhere between 0% to 47% depending on what you earn. For example, if your tax rate is 26%, you will save $26 in tax for every $100 spent.
My general thoughts are that you should never do anything just for tax purposes. If a business purchase is imminent and it makes commercial sense, then yes, buy it and claim it in your tax return.
𝗧𝗜𝗣 𝗢𝗙 𝗧𝗛𝗘 𝗗𝗔𝗬: It needs to make business sense. Commercial considerations first, tax considerations second.
Like any tax advice make sure you get help for your specific situation. If you are a business owner and you are overwhelmed this tax time, I’ve got your back.
Simply complete a few details and I’ll schedule in a FREE 15 minute appointment to discuss your situation.