On 18 July 2017, Steve commenced a part-time business activity as a sole trader, whereby he repairs broken television sets, radios and CD players Steve uses a corner of his garage in the Carindale home to carry out this part-time business activity.

Steve applied to the Australian Taxation Office for an Australian Business Number. His ABN is: 44 165 730 834. Steve is not registered for the GST as his annual turnover is less than $75,000 per annum. Steve trades under his own name in running this part-time business activity. He did not sell any good or services over the internet.

Steve keeps detailed records of this sideline business activity in Xero. Steve informs you that he derived total gross assessable income of $8,200 from the provision of services for repairs to electronic equipment in respect of the period 18 July 2017 to 30 June 2018.

Steve's allowable deductions in relation to this part-time business came to $9,416 (including depreciation on various business assets). Hence, his loss for the year ended 30 June 2018 came to $1,216.

For the purposes of HandiTax, please lump the $9,416 of expenses under All other expenses at Item P8 of the tax return. Steve advises you that he did not have any opening or closing stock, nor did he sell any assets used in his business.

Steve informs you that he has used existing assets which he owned prior to commencing the business (consisting of some hand tools, electronic equipment, laptop computer and a colour printer). These assets were relatively old and were already fully depreciated for tax purposes prior to Steve commencing his part-time business activity on 18 July 2017. Hence, the written down value of these assets for tax purposes was $Nil. No other depreciable assets were used in this part-time business activity.

Steve has no debtors or creditors outstanding at 30 June 2018 and did not pay himself a wage (as he operates as a sole trader). Nor did Steve make any payment during the year to associated persons.

Question:

- being the loss of $1,216 in relation to his part-time business activity conducted during the 2018 income year.

1. what section references, cases, rulings, determinations etc. were used as authority to research the two abovementioned tax issues? and

2. the conclusion... claim the deduction or not claim the deduction?