Question about End of Year Expense Claim

Lsureshi on 29/06/2024 - 17:57
Last edited 29/06/2024 - 18:05 by 1 other user

Hi, am a sole trader working in tech.

I purchased Apple gift cards and placed an order for a custom-build laptop through the Apple online store. The laptop has not yet been shipped, hence I do not have the invoice with me yet.

I have proof of purchase for the gift cards and the order document indicating the total amount spent on the laptop using the gift cards.

If Apple does not provide me with the invoice by the end of this FY, am I still eligible to claim this expense for this FY, or does the lack of invoice prevent me from claiming it?

And if I am unable to claim the expense this FY, given that I have already spent the money on the gift cards, am I required to pay tax on this amount?

• 

  bemybubble on 29/06/2024 - 18:10

  Pretty sure won’t be able to claim anyway. Must be available for use. If it’s not doesn’t matter if you ordered today.

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    sureshi on 29/06/2024 - 18:27

    ok, I already spent the income from my business buying the gift cards. lol
    Do I need to declare the 4k I spent on buying gift cards as income and pay tax for that as well?

    It is a new business that was setup a month ago and I literally spent the 5k I made this FY on gift card for the laptop and few other things.

    • 

      bemybubble on 29/06/2024 - 18:31

      Good question. I would say that the ato would look at the ultimate purchase as you haven’t intended to purchase the gift cards in their own right to say gift out.

      https://community.ato.gov.au/s/question/a0J9s000000S0Ky/p-00…

    • 

      Jaduqimon on 29/06/2024 - 18:35

      +1

      of course you need to declare that 4k income. you just dont get to claim the 4k expense as deduction this FY.

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  Ocker on 29/06/2024 - 18:32

  No invoice for the laptop means no claim

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  foxmulder on 29/06/2024 - 18:37

  Gift card is only a substitute of cash, thus purchase of laptop is not yet made.

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  7ekn00 on 29/06/2024 - 18:41

  +2

  That's ok, apparently the ATO accepts Apple Gift Cards ;)

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  sureshi on 29/06/2024 - 18:45

  -4

  I have the order email from Apple that shows the equivalent amount spent on the order in the form of gift cards. The cash has left my account and the gift card cannot be redeemed anymore.

  Since I am able to prove that the money is not with me and the intent of purchase is there in the form of the order, I was thinking I have a chance.

  It is not that easy though, is it?

  • 

    brad1-8tsi on 30/06/2024 - 15:13

    If you are starting a new business and are serious about it being a business rather than a potential side hustle tax lurk then get yourself a decent tax accountant or you will find yourself in a world of pain.

    In the back of my mind the words "suitable apportion" regarding tax deductions keep springing up.

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  Signet on 30/06/2024 - 20:20

  Apple may provide an invoice showing invoice date as this FY instead next maybe.
  If you hold off doing your tax return until you get an invoice you’ll know for sure.