When we receive our GFs over the post there’s going to be an invoice with it as far as I know.
But which date is going to be stated on it? The one from the day we ordered and made the payment?
Or the day of when you sent the GF out?
I’m asking because my accountant wants to know how to deduct my business expense, for this year or the next.
Tom
I cant vouch for what the Invoice will say when I/we get the final product, but I can say that I fully intend to use the receipt that I recieved in my email when I paid for it and tax deduct for this year
At least one member of the forums is a CPA, but it would seem to me the question is whether you use cash or accrual accounting for your business and not so much the date on the receipt.
@dhanvinddvs are you planning to use this for business or personal use? If it’s personal use, can you help me understand how this will be tax deductible?
The invoice I got in the mail is not something my country will accept. As in my country sending and receiving invoices over mail is not allowed.
You can cancel the order at any time so it should be treated as a prepaid expense this year and isn’t an actual expense until it has been shipped by Glowforge to you. I should add that if you bought the Pro it should really be treated as an asset and amortized over the life of the warranty once you receive it. As the basic is only 6 month you can expense it all next year.
Big disclaimer that first I’m a Canadian CPA and second not a Tax specialist. That being said talk to an accountant and I expect you’ll find that you can deduct as a personal expense as long as you’re running it with an expectation of profit. You’ll need to record all your revenue from the sale of goods as well as the cost of materials etc. If you just try and expense the Glowforge without showing any revenue you will more than likely trip a flag and receive a visit from your friendly tax auditor.
Hmm, thinking about it a bit. I think that since some of us are getting refunds because of the referrals the invoice might be dated on the day of shipment/referral refund.
But then again, invoices have to be dated from the day of purchase/payment, at least here in Slovenia or we have to receive a prepayment invoice. Hmm…
I intend to use my purchase receipt and credit card statement for tax purposes. Regardless of invoice date, the expenditure happened in 2015, so the expense starts then as well