Clothing, jewellery, gaming products, flights and crypto assets are just some of the things you might have to account for in your tax return as part of your business income.
If you received these or any other non-cash benefits instead of money for your goods or services, or as a tip or gift – you must record them as income at their market value.
This means you record the cash price that you would normally have to pay for those goods or services.
You may be able to reduce the assessable amount of a non-cash benefit you’ve received, by the amount you would have been able to claim as a deduction if you had purchased the item to be used in carrying on your business.
It’s important to report your regular forms of income
Such as:
- cash and digital payments
- vouchers or coupons
- business investments
- online and overseas business activities
- services you provide using your personal effort and skills (personal services income)
- the sharing economy, such as ride-sourcing
- assessable government grants and payments
- the value of trading stock you take for your own use
- payments from insurance claims.
There are some payments that aren’t assessable income, so you don’t need to include them on your return, such as:
- non-assessable non-exempt (NANE) government grants
- bona fide gifts or inheritance
- GST you’ve collected
- money you’ve borrowed or contributed as the business owner.
Always keep accurate and complete records to prove the income you report and the expenses you claim as deductions.
Remember, registered tax professionals like Allan Hall in Brookvale can help and advise on your tax.