Coffee Tax Deductible?
As tax season approaches, small business owners may be looking for ways to reduce their tax burden and save money. One way to do this is by claiming deductions for business expenses, such as office equipment.
According to Liz Russell, a senior tax manager for online tax return provider Etax, a high-quality office coffee machine can be a wise investment and fully tax-deductible at tax time. However, she advises to seek the advice of a tax agent before making any big-ticket purchases to ensure that the purchase is claimable on your tax return and that it makes financial sense for your business.
In order to claim a coffee machine as a tax write-off, the machine must be used for business purposes only and cannot be located on home premises where a home-based business is conducted. Additionally, only business owners who are not registered for GST can claim the full cost of the machine.
While it’s important to consult with a tax professional before claiming any deductions, if you meet the criteria, your office coffee machine could potentially save you money on taxes.