Starting a fashion blog or online fashion business? One of the hardest parts faced is understanding the items which you can use to offset any tax debt your business may accumulate.
And while the best person to speak with will be your accountant, below is some general knowledge on a range of items you can consider using on your tax return next year.
Make it Official
The first and most important thing to do is to get registered as an appropriate business or entity. After all, if you aren’t registered then you are just an individual taxpayer.
When you register your service, be sure that you are entirely truthful in your application. If you include misinformation then it could cause serious problems when it comes time to lodge your tax return and you find that you aren’t eligible for a number of tax breaks or concessions.
Once you have your registration complete it’s time to consider what time of items you can deduct. With the example of somebody who is starting a fashion or makeup blog, below are some items to consider:
- Hair styling products used during your blog
- Hair care products used during your blog
- Makeup used during your blog
- Makeup remover used during your blog
- Internet access used during your blog
- The computer you use during your blog
Did you notice a trend with the items above? Each of the items which you want to claim in this example needs to be used as part of your blog. This means that you can’t buy a new lipstick and wear it for a blog post and expect to deduct it from your tax.
Instead, only consider items which were used for the purpose of your blog or product. For example, if you are doing a video of a makeover then you can look to include the items you use and mention during the video. However, these cannot be used for your personal time.
It’s All About the Paperwork
As with all things in life, if you don’t have the paperwork as proof then the event never happened. And this has never been truer than when it comes time to lodge your tax return.
Each time that you buy an item for your business, be sure to keep it separate and filed away cleanly with the rest of your business documents for a period of at least three years from the date you lodged your return or two years from the date the expense was paid. This also includes the times when you take advantage of a woman within coupon from Groupon Coupons where you receive an email receipt, so be sure to print it keep it with your business records.
If in doubt, keep everything for three years!
Starting a business can be a great way to not only make money but to also give your life new purpose. If you are starting a business, be sure to keep this article in mind and ensure that you are making the most of the expenses you incur during your business or service.
In addition to these tips, be sure to speak with line-minded fashionistas and business owners about their experiences with taxes and their advice.