Can I claim a laptop on tax as a sole trader?

Question

I am currently working as a sole trader teaching guitar in a few local primary schools. I use my home computer to write up invoices/track attendance/email clients/write up sheet music etc etc, however it is old and fairly unreliable - and I am looking at buying a laptop to do all this (the asus EEE pc).

Is it possible for me to buy one and claim it on tax? If so, how does it work, do I just need to send in the receipt at tax time? I am in the STS. Cheers!

Answer 1

Now... I don't know enough about computer - but apparently Asus EEE is very very cheap? Is that right?

If you are in the STS (it's not STS anymore - but the relief is the same) - if it is below $1000 you can write it off straight away - that's correct. You will need to include the figure under the Business and Professional Items Schedule of your Individual Tax Return. (Net figure to go to item 14 of the supplementary tax return (per 2007 tax return form - 2008 could be slightly different) Details to go to P8 of the 'Business and Professional Items Schedule')

You don't have to send the receipt to the ATO - just hang on to it. You only need to show it to them if they ever contact you later and ask for verification.

Answer 2

if your using it for your business yes, if your also using it for personal use you will need to apportion the cost for private use.

look up the ato's website for the depreciation rules.

Answer 3

Yes you can claim it, but if you use it for personal use aswell you can only claim the business proportion of it. So you need to work out the percentage of business/personal use and claim the business portion only.