How Self-Employed PT Expenses Boost Your Borrowing Power

Being a personal trainer comes with the freedom of being your own boss. But it also means managing your finances, including tax deductions and loan applications. The good news is, many of your business expenses can be claimed as tax deductions, lowering your taxable income and potentially increasing your borrowing power.

Here’s a breakdown of how common PT expenses translate to loan applications:

Claimable Expenses:

• Gym Memberships: If you use a gym to train clients or for professional development, you can deduct the membership fee.
• Equipment: Resistance bands, dumbbells, yoga mats, and other tools used for client sessions are deductible. The ATO offers instant deductions for equipment under $300 (increased to $20,000 until June 30, 2024 for eligible businesses) or depreciation for more expensive items.
• Marketing Costs: Flyers, business cards, and online advertising to promote your PT services are claimable expenses.

Tax Deductions and Loan Applications:

By claiming these expenses, you reduce your taxable income. This creates a more favourable financial picture for lenders, potentially increasing the amount you can borrow and improving your loan application.

Remember:

• Keep receipts for all your business expenses.
• The Australian Taxation Office (ATO) has guidelines for what can be deducted https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/in-detail/occupation-and-industry-specific-guides/e-k/fitness-and-sporting-industry-employees-income-and-work-related-deductions/deductions-for-work-expenses/fitness-and-sporting-industry-expenses-ag.

Consulting a professional:

For specific advice on your situation, consider consulting a registered tax agent or financial advisor. They can help you maximise deductions and ensure your loan application reflects your true financial health.

By understanding how tax deductions work, you can leverage your business expenses to improve your borrowing power and achieve your financial goals. Remember, the more you can demonstrate responsible financial management, the stronger your loan application will be.