Stryker's got it.
Oz AVI expanded some on Mario's thoughts, and I've got a few more...
On July 9, 2018 at 20:32, Oz AVI said...
I'll second what Mario says, it astounds me that people talk about claiming expenses on their tax as if it doesn't actually come out of their pocket.
Before I started a business, I thought a business deduction was the cost of items, and the total amount of those costs came off the tax you pay. Anyone who still thinks that has, as I had, no idea what business and expenses are about.
Then I learned the simple fact that instead, business deduction means you don't have to pay taxes on the income you generated that made it possible for you to buy that item. You don't have a direct reduction of tax. Instead you have a reduction of taxable income. And how is that not a fair way to apply things?
All that 'claiming expenses on your tax' means is that it comes off your taxable income.
Yes, as I said.
We still have to actually pay it!
You ignore that every deductible thing you buy results in you having something, and you don't have to pay tax on the income that you had to have to buy it! Of course you pay it, but there's no difference between deducting the cost of, say, software from your bottom income line and deducting the cost of all the gear you sell from your bottom income line. Do you want to lower your expenses? Stop buying gear for clients! Fire your installers! (This last method was applied to salespeople by Circuit City. They had a temporary jump in income.) You can, you know!
And I'll add Teamviewer to the list, for a commercial licence, they charge $50 ($67 Aus) per month, I only use Teamviewer half a dozen times a year, wtf!
You are completely in control of that money flow. Stop it right now if that's really how you feel about it.
You have chosen (remember, it was your choice!) to INVEST $600 per year so that you can use Teamviewer any time you want to. See -- you GET SOMETHING for these expenditures. And while you complain about price, you don't tell us whether Teamviewer saved you a thousand bucks every time you used it, while it cost you only $600 per year. Frankly, your argument makes it seem like you think you made a poor choice in having Teamviewer. If it was not a poor choice, well, then, that's how much it costs.
Don't like paying $600 a year for Teamviewer? Stop it! Cancel!
