Do you use your trading stock for personal use?

If you take an item of your trading stock for private use, remember to include the value of the stock in your assessable income.

Trading stock is anything your business produces, manufactures, or acquires to manufacture, sell or exchange.

Here's how it works: John and his family run a grocery store. At the end of the week he does his own grocery shopping there. John keeps a record of the value of the goods he's taken for his personal use, and reports that amount as income in his business accounts. The records he keeps includes:

• the date

• the reason stock was taken

• a description of what he took

• the cost or market value of the item (excluding GST).

For more information please contact us on 9999 9999.

Source : ATO small business July 2018

Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/newsroom/smallbusiness/

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