PART 2: Gadgets and my last-minute Tax Purchases!

WHAT GADGETS CAN I CLAIM?

As a reminder, you won’t be able to deduct any blogging expenses including gadgets from your income if your blog is considered a hobby.

If your blog is considered a business, you can claim items like your computer, smartphone, wireless router, digital camera, and software such as Photoshop.

Just remember that if you use some of these devices for personal use as well as business use, you can only claim the percentage used for business purposes.

TIPS FOR PURCHASING LAST MINUTE GADGETS BY JUNE 30

Business-related items costing less than $20,000 each are eligible for an immediate tax deduction for the year in which you purchased them. This tax break was designed for small businesses as an alternative to depreciating the purchase over its effective working life.

Does this mean you can go on a shopping spree? Not quite. Your deductions will not be a dollar-for-dollar refund. Instead, you’ll get back only a portion of the expense, depending on your tax rate.

Some purchases make better business and financial sense than others, and those are the types of investments you should consider purchasing before the deadline.

A great example of this would be your mobile phone. If you have a one-year-old phone in perfect working order that enables you to carry out your blog without any issues, the cost of purchasing a new phone wouldn’t make enough of a dent in terms of its benefits to you and the business.

On the other hand, let’s say you’re trudging along with a phone that’s four years old. It’s slow, crashes constantly, and you never have enough storage space to take and edit photos on the go. The improvements that would come from a new phone–increased productivity, the ability to run your blog from anywhere, better photos and videos–would come much closer to offsetting the cost of the investment.

BLOGGER OR NO BLOGGER: IS IT TRUE YOU CAN CLAIM ONE HANDBAG UP TO $1000 PER TAX CLAIM?

The Australian Tax Office now acknowledges that although the term ‘handbag’ is often associated with personal use, if it’s used to carry work papers or laptops, just like a men’s briefcase it can be considered as a business expense.

If the bag in question is small, tucks under an arm, and doesn’t fit much in it, is not likely to be claimable. But, a larger over-the-shoulder bag in which you carry a work laptop and documents may be claimable.

Next, you’ll have to work out whether it’s used 100% of the time for work, or whether you need to split the work and personal use. If like many people you have two bags, one smaller one with your personal effects and one larger one with your work-related items in it, then you have a clearer claim in the ATO’s eyes that the second bag is purely for work purposes. It’s also easier to justify and claim a weekday work bag when you have separate out-of-work handbags. However, if you’re hoping to claim one bag that plays double-duty across work and personal, you should keep a logbook for at least and month to calculate how much you use the bag for work, and how much the use is personal.

Finally, if the bag costs $300 or less and you’re claiming it against the employment income you earned, you can claim the full amount on your next return. However, if it was more than $300 you’ll need to depreciate the claim over a number of years.

Keep in mind though, a deduction doesn’t provide a dollar-for-dollar boost in your refund. Instead, the deduction lowers your taxable income which means you’ll receive back whatever your marginal tax rate is. Take for example an office worker earning $60,000 a year who spends $299 on a handbag that she uses purely for work related purposes. She would see her tax refund increase by $108 meaning she’s still out of pocket $191 for the purchase of the bag. And, that’s the best-case scenario with no personal use.

If on the other hand you’re looking to claim the bag as a deduction against the ABN income earned as a blogger, you could claim the entire amount in one go against the ATO’s $20,000 asset write off scheme we mentioned above. However, you’re still up against the fact that it won’t be a dollar for dollar reimbursement, and you’ll still need to apportion work and personal use of the bag such that you’re only claiming a percentage for the work-related use.

MY LAST-MINUTE TAX SHOPPING

Belkin QODE Ultimate Lite Keyboard Case for iPad 9.7”(2018)

Complete your office set up with Belkin’s QODE Ultimate Lite Keyboard Case for iPad 9.7”, a thin and lightweight yet tough case that is both durable and packed with features. With the added benefits of being a tax deductable expense, this fully protective case keeps your iPad truly mobile, a premium aluminium keyboard with well-spaced keys delivers an enhanced typing experience, and advanced power management features preserve battery life. Holding your iPad at the perfect viewing angle for typing or switching easily to media mode for videos or presentations, it’s easy to use anywhere. Despite all that, it still manages to be extremely thin as well as the lightest keyboard Belkin has ever made, perfect for storing in your bag when commuting between meetings. This sleek and functional office item will not only enhance your working experience but keeping the receipt will also allow you to claim your tax deduction!

Alcatel A3 | Optus 

If you’re after a second phone for work but don’t want to break the bank, the Alcatel 5-inch A3 might be for you. At only $149, the A3 offers innovative security features including fingerprint access to unlock your phone and protect sensitive data as well as private mode that enables apps and photos to be kept from prying eyes, such as sensitive work emails. Using private mode, up to five fingerprints can be programmed to give access to five different apps opened directly from the lock screen. Other value-adding features of this affordable smartphone include its bright HD display, as well as camera quality with a 5MP front camera featuring selfie flash, and a 13MP rear camera with LED flash which creates flattering lighting by day or night. Better yet, at a $149 price-point, it is immediately deductable!

Laser The Hills Wireless Charging Dock 

For anyone from small business owners to freelancers and influencers, smartphones and tablets are necessary devices used day-to-day. Ensuring these are juiced up and ready to go as you move from meeting to meeting, the Laser ‘The Hills’ Wireless Charging Dock is the ultimate tax deductable companion. The complete charging solution, this gadget features wireless and connected charging options, with a Qi enabled bed and four USB charging ports with accompanying holding bays at varied heights. The innovative design caters for both smartphones and larger tablets, allowing you to simultaneously charge multiple devices while keeping your desk space neat and organised.

Logitech K780 Multi Device Wireless Keyboard

The Logitech® K780 Multi-Device Wireless Keyboard redefines what a desktop keyboard can do, letting you easily type on – and switch between – three connected devices, whether Windows® or Mac® and Android™ or iOS. You can write an email on your computer then touch an Easy-Switch™ button to reply to a text message on your phone or tablet. The keyboard design and layout, PerfectStrokeTM keys and 10-key number pad provide a comfortable and familiar typing experience, while the integrated cradle holds your mobile device at a stable reading angle. The K780 Multi-Device comes with a Logitech Unifying™ USB receiver or Bluetooth® Smart technology so you can choose the best way to connect.

CODE REPUBLIC Luxe Work-Life-Travel Handbags 

If you have been eyeing off that designer bag but know it won’t make the cut for the office and your needs, check out CODE REPUBLIC. The collection of ultra-luxe leather work-life bags that can be claimed as a tax deduction this end of financial year. Made for the boss lady, CODE REPUBLIC combines the strength and space to carry everything you need including a laptop, iPad and more, with the aesthetic of a luxurious, feminine and stylish handbag. Featuring rose gold accents and a bright palm tree lining with integrated pockets, keys and small items are easily found and dedicated compartments securely hold your phone, water bottle, makeup and so much more. With supportive, reinforced shoulder straps, the luxe handbags will ensure carrying the world on your shoulders has never looked so good! CODE REPUBLIC’s handbags are functional and stylish – finally a beautiful and functional handbag that you can claim as a work-related expense!

So there you have it all. I really hope that helps you this end of financial year. Big thank you again to Liz for answering all my questions. For more information visit https://www.etax.com.au

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