Purchasing of prospecting equipment tax deductible?

[Newbie]

I had an interesting thought. Since things like trommels and gpx5000 unit can cost well in to the $1000's is it possible to have them written of as a tax deduction. Most likely a deprecating asset but Id liked to know if anyone has had advice on this. Spent quite a bit this year on this kind of stuff and wondering if it is tax deductible.

 

[Gold miner]

No mate not normally. It would be classed as a hobby. Which is why you can sell your gold tax free.
If you set up a business, and sell gold plus the gst component then you would be able to claim.
But it has to be a trading business. Then things like fuel tax credits etc can be claimed too.

 

[Newbie]

That was my hunch but I figured the trade off of tax free sale of gold was the case.

 

[WalnLiz]

Hi Newby...If your in the fortunate position of running a registered business in a related field then claiming a metal detector as tools of the trade is quite legal. Eg...electrician , plumber , drainer , concreter , builder , etc. The use of a metal detector is often necessary to locate underground pipes,/wires,/services,etc and the type of metal detector preferred is obviously the one that goes down the deepest....so gpx5000 is in this case totally claimable..Cheers Wal.

 

[axeman]

Your right Wal, If I bought a gpx5000 I could claim it on tax. I amongst other things I cut mill timber and own a mobile saw mill so I need a metal detector to check for metal objects in the logs. A gpx 5000 may be a bit over the top though. Mick

 

[WalnLiz]

Timber mill may be a little outside the tax departments guidelines but would still fall under an acceptable reason for the possession of a metal detector, and better to have the best tools for the trade. You wouldn't run a cheap Chinese blade on your saws i hope; ...I know nearly every plumber in Canberra has one and claims them as tax deductible. Mine gets rented out on many occasions and can be quite a little earner....cheers Wal.

 

[BoydWilliam]

Sounds like a decent idea!
Unfortunately i dont think my job would even come close to making me eligible for a metal detector!

 

[Gold miner]

Let me tell you that the ATO is all over this stuff!
We bought our first lease, then pegged two more. $50,000 outlayed...
Accountant said no way, its a hobby!!! Some frikkin hobby, $50,000 in receipts for golf clubs!!
So lets go to $100,000 and actually start to mine.....
Only when we started trading in gold, with a gst component attactched, could we claim our outlays...
Unless, as said above, you have a legit use for a 5000 I would say you are facing an audit rather promptly!!

 

[axeman]

Your right gold miner, The ATO would be all over me like a rash " your a sawmiller, why would you want a $6,000 detector?". I could show them the scars on my legs from were broken saw blades got me, maybe that'll convince them. Mick

 

[WalnLiz]

If you haven't got a legit business I certainly wouldn't try claiming a metal detector...but by the same token the tax department doesn't distinguish between a $1000 or $6000 detector (tool) of trade. I know this for a fact as my detecting Buddy is a senior Auditor with the Tax Department. They see it no different to buying a 20 grand ute compared to a 60 grand ute. Word of advice ...if your not in the right game...don't claim one ...Cheers Wal.