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Yet another PSI Question - Sole Trader

Discussion in 'Accounting, Tax & Legal' started by msEB, 8th Apr, 2011.

  1. msEB

    msEB New Member

    8th Apr, 2011
    I have spent the last few hours going through the ATO's information regarding PSI.

    If I am operating as a sole trader and 80+% of the income would be classified as PSI, I understand that there are certain expenses that I can not claim eg. rent/interest/mortgage etc. However what happens with expenses for other parts of the business?

    I am looking at building a website for the non PSI part of the business to help it grow. It will probably cost around $8,000. Can I claim that as an expense against the PSI income. The expense of building the website will most likely be incurred during this financial year, but it will not be profitable til next ear. The ATO documents say that you can't if you are a company or trust. It doesn't reference anything if you are a sole trader.