If you take an item of your business's trading stock for your private use, you need to:
- account for it as if you had sold it
- include the value of the item in your business's assessable income.
There are 2 ways you can value this stock. You can either:
- keep records of the actual value of goods you take from your trading stock for your own private use and report that amount, or
- use the amounts the ATO provides as estimates of the value of goods you’ve taken (updated annually), which are available in the ATO’s taxation determination.
Example
John runs a grocery store. At the end of each week, he takes food from his grocery store for his wife and 3 children.
John records the value of these goods and reports the amount as income in his business accounts. His records include:
- the date
- a description of what was taken
- the reason stock was taken (personal use)
- the cost or market value of the item (excluding GST).
Last modified: 18 Jul 2023
Claiming small business tax deductions
Steps | Progress | ||||
---|---|---|---|---|---|
What are deductions and what can I claim? |
5 mins | ||||
Accounting for private use of assets |
9 mins | ||||
Expenses you can never deduct |
1 mins | ||||
Expenses you can deduct over time |
10 mins | ||||
Stock and asset records |
5 mins | ||||
Expenses you can deduct immediately |
5 mins | ||||
Other deductions records |
1 mins | ||||
Motor vehicle deductions |
4 mins | ||||
Motor vehicle deductions records |
2 mins | ||||
Related courses |
1 mins | ||||
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