Claiming Tax Deductions?
As a business, you can claim tax deductions for expenses incurred in ‘carrying on your business.
If you'd like to claim tax deductions for your business, an ABN is a necessary requirement for making a tax return regarding your business income.
The way the ATO distinguishes between individuals and businesses for tax purposes is through ABNs. Therefore, you need to use your ABN to lodge the correct tax return and claim the relevant deductions for your business.
You would typically declare both your ABN and income in a ‘business and professional items schedule’ (or similar item) of your tax return. Companies declare both their ABN and business income in a company tax return.
Tax deductions and requirements can vary based on your situation and expenses. Consult with a tax professional for personal advice, or join our Legal and Accounting Plan to help plan your business accounting needs!
To read more on this, head to our blog article.
Need to register a Business ABN? Start your registration now!