You need to use materials and tools for your business and the ATO allows tax deductions for necessary supplies that you buy. Show proof that you’ve purchased these materials during paint jobs throughout the year and track all the costs of these supplies and tools. For a painter like you, these may include sponges, drop cloths, texture terminators, paint sprayer, roller covers and work platforms, among others. Deductions can also be made for fees spent to rent tools.
Ensure you have complete records and receipts otherwise you may not be able to claim these deductions. You will sometimes need to ask for receipts as these may not always be automatically given after purchases. Tax deductions can also be made for costs related to travel and your vehicle’s business use. You can also deduct expenses from vehicle maintenance. If you use your truck to move your equipment and travel to and from a job, you can get deductions for repairs, oil changes, mileage and tires or claim a standard mileage rate.
If a job requires you to travel outside your city, you may also be able to write-off your meal and hotel expenses. What you cannot claim are commuting expenses – the costs of traveling to your place of work and back home.
You may also get tax deductions if you have a home office. To claim this, you must use your home office exclusively and regularly as your primary business place. It must be a site where you meet with clients or a separate area you use for your painting business.
Business tax accounting
As a small business owner, you need to know about all the tax deductions you can claim. Outsource an accountant to handle your tax lodging and tax clearance at the EOFY. If you know your tax deductions, you may be able to understand financial statements and be ready for the year end before it gets complicated. Book a consultation with us so we can guide you.
As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.
You can click here to speak to a business, accounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.
We would love to help you formulate investment strategies and streamline your processes to take your business to the next level. Our goal is to help you grow your business, find ways to invest more and increase your productivity.
Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 97444522
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437