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Thread: Claiming on tax..

  1. #1
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    Claiming on tax..

    Gene Cafe Coffee Roaster $850 - Free Beans Free Freight
    Im a humble barista who, so far, at home has been using a stove-top percolator, and while it makes a nice brew, i am keen to extend my setup at home.
    I have been looking at getting a La Pavoni professional PRH (brass and wood) accompanied by a Mazzer mini.
    It would be much easier to justify this purchase if I was able to claim it back on tax. *Would this be possible/at all legal for a home use only machine?

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    Senior Member Koffee_Kosmo's Avatar
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    Re: Claiming on tax..

    Quote Originally Posted by 6A6E7560736E010 link=1273976461/0#0 date=1273976461
    Im a humble barista who, so far, at home has been using a stove-top percolator, and while it makes a nice brew, i am keen to extend my setup at home.
    I have been looking at getting a La Pavoni professional PRH (brass and wood) accompanied by a Mazzer mini.
    It would be much easier to justify this purchase if I was able to claim it back on tax. *Would this be possible/at all legal for a home use only machine?
    One can only claim a tax deduction if you are running a
    1] Business
    2] Business from home
    3] home office
    4] have clients visit

    You get the idea
    Call your accountant or visit the ATO site for detailed info

    KK

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    Senior Member Luke_G's Avatar
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    Re: Claiming on tax..

    I WISH!

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    Re: Claiming on tax..

    Thanks heaps Kosmo,
    Ill check it out, im convinced theres a way around it.
    haha

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    Re: Claiming on tax..

    Self education expenses used to be possible. But that has changed a lot since I last used it ;) Do like I did buy a commercial machine and do a few external jobs so long as income doesnt exceed outgoings by to much your all good on the tax front and your gear is then deductible.

    BTW apart from the gauge I wouldnt bother with the extra volume of the PRH over the ERH (what I have) you wont be able to really use it. After 3 straight double shot coffees in a row the grouphead is running to hot. So even the last one of the 3 unless you turn it off while you grind and tamp the next one you can start to have a problem with getting a hot shot by number 3.

    Refilling is simple with the ERH just flick it off purge the boiler into a jug till the pressure is gone then I normally fill it with half boiled water from the kettle to avoid thermal shock and leave the PF out for 4 or 5 minutes to cool a bit before dropping it back in. If I am planning a large party I have the house wired for the 3 group 8-)

    If you really want the gauge and that is the reason to buy it then you can get the adaptor and bits from Orphan Espresso in the USA.

    As to hard to make a shot NO hard to get a good shot NO consistantly great shots YEP but using your hand for temp and brew control is part of the fun :)

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    Re: Claiming on tax..

    beanflying, cheers for your advice, ive had experience with the pav and am aware of how quickly it heats haha. *i wasnt going so much for the boiler capacity, or the gauge, but more the brass + wood finish, and i have found that this is easier to source within aus, in the PRH.

    Correct me if im wrong :s but maybe im looking in the wrong place.
    (so far ive sourced the PRH for about $1400, which i am pretty happy with)


    [edit]
    Quote Originally Posted by 6E696D626A607565626B0C0 link=1273976461/4#4 date=1273988783
    Do like I did buy a commercial machine and do a few external jobs so long as income doesnt exceed outgoings by to much your all good on the tax front and your gear is then deductible.
    does this mean to say that i can buy my gear, take it to a few friends parties etc and as long as they pay me, its counted as work??
    sorry if my question is somewhat suited to the newbie tag under my name haha.[/edit]


    [edit]i also kinda like the sturdier look of the professional models larger boiler, imo it looks more proportionate, but at the end of the day, its going to pull the same shot for me every morning/arvo and the PRH may just be abit of a wank.[/edit]

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    Senior Member GregWormald's Avatar
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    Re: Claiming on tax..

    Check with your accountant.

    You will probably need a GST number, reliable records, and a throughput exceeding $10,000 to be able to claim any tax advantages. Otherwise it just gets counted as a hobby!

    Greg

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    Re: Claiming on tax..

    haha thanks Greg, I was beginning to think maybe this idea was too good to be true.
    I will deffs give my local, friendly tax man a call though.
    Something tells me I will be disappointed with the answer I get though.

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    Re: Claiming on tax..

    $1400 for the PRH in Oz is a good price, I did see further down in another thread you have used one so all good :) Just trying to save you a few $$ ;) Budget for a decent tamper too as the plastic one in the box is 2-3mm undersized *>:(.

    Try here, one of the girls that works for me uses this for a market type business/hobby she does http://www.ato.gov.au/corporate/cont...t/00199712.htm But yeah education weddings parties anything you can to get a $$ back I reckon.

    As to my tax write off we have done 30kg over 2 weekend jobs so income > material costs = profit = so I owe the ATO *:(

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    Re: Claiming on tax..

    Quote Originally Posted by 5354505F575D48585F56310 link=1273976461/8#8 date=1273992511
    30kg over 2 weekend jobs
    :o ~400 drinks a day!!! you have been busy! are you a righty or a lefty, post a pic of yourself so we can see the Arnold Schwarzenegger Arm ;D

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    Re: Claiming on tax..

    Quote Originally Posted by 44434748404A5F4F4841260 link=1273976461/8#8 date=1273992511
    Budget for a decent tamper too as the plastic one in the box is 2-3mm undersized *>:(.
    haha mate, im just about to produce my own beautiful brass and spotted gum custom personal tamper. :D

    Quote Originally Posted by 44434748404A5F4F4841260 link=1273976461/8#8 date=1273992511
    Try here, one of the girls that works for me uses this for a market type business/hobby she does http://www.ato.gov.au/corporate/cont...t/00199712.htm But yeah education weddings parties anything you can to get a $$ back I reckon.

    As to my tax write off we have done 30kg over 2 weekend jobs so income > material costs = profit = so I owe the ATO *:(
    Thanks mate, ill deffs check that out. *haha sux about that, but atleast youre getting some good business i guess :P

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    Re: Claiming on tax..

    Getting OT here a bit. Grab a lump of "Aluminium Bronze" much tougher than Brass (close to mild steel in strength) mine had needed only just a wipe after a year of use http://coffeesnobs.com.au/YaBB.pl?num=1241086698/#17 to have a look.

    As to my strong left arm I was OK but a few of the lightweight girls had a good workout with the big lever ;D

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    Re: Claiming on tax..

    Quote Originally Posted by 696E6A656D677262656C0B0 link=1273976461/11#11 date=1273997182
    As to my strong left arm I was OK but a few of the lightweight girls had a good workout with the big lever ;D
    ;D ;D


    haha yea cheers for the heads up, ill check it out.

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    Re: Claiming on tax..

    Quote Originally Posted by 71555C5C5F5F6571554957553A0 link=1273976461/1#1 date=1273977710
    Quote Originally Posted by 6A6E7560736E010 link=1273976461/0#0 date=1273976461
    *Would this be possible/at all legal for a home use only machine?
    One can only claim a tax deduction if you are running a
    1] Business
    2] Business from home
    3] home office
    4] have clients visit

    You get the idea
    Call your accountant or visit the ATO site for detailed info

    KK
    I am an accountant (not a tax specialist but) and KK is pretty much 100% correct, if its for home use the answer is NO.




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    Re: Claiming on tax..

    haha alright cheers, think ill just bite the bullet and fork it out.
    :)

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    Re: Claiming on tax..

    According to the tax legislation a hobby is something that isnt a business. How handy is that!!! Case law has gone some of the way to help but it isnt definitive. Size/scale is one of the things that they look at as important but in some cases people with an orchard on their property with multiple trees have been considered a hobbie but someone that owns one prized bull was considered a business. It is because of that that noone who actually knows tax will give you advice over a forum.

    The most important one is intention to make profit. Im guessing that that is not your sole reason to buy the machine.

    It is likely that you would have to advertise, have a bank account, have business processes setup and many other things before you could feel comfortable enough to say that you are running a business.

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    Re: Claiming on tax..

    Haha, thanks Justin.
    yea, sounds like this is a no-goer, thought i may aswell find out about it though.
    thanks for all your help guys.
    :)

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    Re: Claiming on tax..

    Ok, so i just spoke to my accountant, some good news i guess.
    he says that as long as i am actually working as a barista, i would be able to claim half back on my purchases, as long as i am also buying a variety of different beans from different places, blends, origins etc.. in an effort to expand my knowlege base of various coffees, which would in turn increase the experience of my customers... in other words, apparently, the research idea is a justifyable claim.

    50% back on a potentially $2000 setup is better than nothing i guess.

    I thought there had to be away around it, seeing as ive got a mate in banking who got money back on his foxtel setup and subscription so that he has 24hr access to the financial channel... like the internet isnt good enough. just so happens that the package he had to get for the financial channel also included sport and movies.
    ;D

  19. #19
    A_M
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    Re: Claiming on tax..

    Quote Originally Posted by 484C5742514C230 link=1273976461/17#17 date=1274076354
    Ok, so i just spoke to my accountant, some good news i guess.
    he says that as long as i am actually working as a barista, i would be able to claim half back on my purchases, as long as i am also buying a variety of different beans from different places, blends, origins etc.. in an effort to expand my knowlege base of various coffees, which would in turn increase the experience of my customers... in other words, apparently, the research idea is a justifyable claim.
    I think the better term is on going and expanding ones education in a field that is some what restrictive; rather than research.

    Look closely at the education requirements and what can be deducted ofter 2 /3 or 5 years Vs in one hit is interesting... Just be careful is ya sell the said item on and happen to be the subject of a random ATO audit....

  20. #20
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    Re: Claiming on tax..

    @ AM
    haha yea mate, im deffs gonna have a good look into it, my acountant is also a good personal friend of mine, so i trust him to not put me into a situation where i could end up getting fined or the likes.
    thats why he suggested only claiming half back, as it is still for personal use aswell, he said that should keep me out of trouble, aswell as depreciating it etc.

    Thanks for all your help on the matter :)


    kotaro

  21. #21
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    Re: Claiming on tax..

    I had a laugh thats a "grey area" your pushing into ATO wise.....

    in all reality you can claim anything you like, sure put down 7k on a new LM GS3, you can no problem. Call it "training / education" for your work....... ETAX will let you claim anything.

    BUT like AM said when the audit man come a knocking.......... be able to really justify your deductions well or pay up the back tax, interest, and a fine

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    Re: Claiming on tax..

    Quote Originally Posted by 2B272E23232A460 link=1273976461/20#20 date=1274080452
    when the audit man come a knocking.......... be able to really justify your deductions well or pay up the back tax, interest, and a fine
    haha yea thats the only thing im worried about :S
    gonna have to get it all sorted before i attempt to claim anything.
    keep all my recipts for EVERYTHING.
    I had a laugh

  23. #23
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    Re: Claiming on tax..

    Receipts dont help when you are claiming on something that isnt deductible in the first place. If you are the leading Barista at your cafe and all decisions go through you and you are the one who chooses what beans and what milk etc to use then perhaps you could claim on the basis you mentioned. If you are there just as another employee who happens to make coffee using the provided beans etc etc then your argument is thin. BTW Im not taking a stab at you but if you are someone that is only using a Kitchenaid and a stovetop at home then chances are that you are not at this level.

    Im not saying that your accountant is wrong either because he knows more facts than I do.

    The following is just an FYI for those out there that stumble across this.

    One common misconception that people have is that people think that if an accountant says it is right it is right. That is not the case. Different accountants have different interpretations. The other thing to know is that if an accountant gives you bad advise the only cost to him is the fine. You still have to pay the outstanding tax and the interest.

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    Re: Claiming on tax..

    Behmor Brazen - $249 - Free Freight
    haha yea thanks Justin, great advice. I by no means claim to be a master barista haha. Im just a young guy, starting out, following a passion :)



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