View Full Version : iOS Developer: Tax Deducting your test hardware?

30th April 2011, 12:28 AM
Just wondering if anyone in the Development or Accountancy fields can shed any light on this.

Eventually I'm going to have to buy some iOS devices to test my new applications. Has anyone had any problems tax deducting the purchases of iPhones, iPod Touch, or iPad? In my mind, all of these purchases should be deductible as they are essential to your business, just like the $99 developer subscription Apple make you pay to publish your work.

Judging by what I've read on the ATO website, the major gray area is with the iPhone and 3G iPad. If you use the device as a personal phone/browser AND for development, you can only claim the percentage it is used for development, and ditto for the iPad.

Has anyone run into problems claiming 100% of their devices?

30th April 2011, 09:03 AM
While I'm not a developer I've been running my own business for over 10 years.

The important consideration here is that while you might "get away" with a claim in your tax return, getting audited may see that claim rejected and you'll suddenly find yourself owing more money. For some things that risk might be worth it, other times not.

Having said that, the only person who's likely to be able to give you a good answer FOR YOU SPECIFICALLY is your accountant (assuming you use one). They'll know your business, your tax situation, and your overall financial position. Taking all that into account they'll be able to advise you how to proceed.


30th April 2011, 09:09 AM
To be completely safe, you could say purchase some iOS devices that are ONLY for business use and write those off. The ATO wouldn't have a problem with that in most cases as it is business equipment.

As for using an iOS device for both personal and business use, look at how cars are handled through logbooks. The logbook is used to determine what percentage of the car is used for personal travel and what is business use. My guess would be that you could do something similar and write off a percentage of your devices.

Personally though, I develop on iOS devices and have claimed back 100% of the devices worth without any hitches.

30th April 2011, 05:34 PM
A quick tip from me, if your going to be developing apps it is probably worth talking to an accountant before you start. That way you can work out exactly what you can claim, make sure you structure it to minimise your tax, and also work out if it would even be considered a business vs hobby. Much easier than trying to sort it all out after it has all happened...

30th April 2011, 08:47 PM
Keep your phone bills as a record of usage. They!ll be useful to prove what percent is business use and what percent is personal use. If you do this, try and avoid international calls and premium SMS.