Deductibility of vehicle

Discussion in 'Accounting & Tax' started by JesseT, 21st May, 2016.

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  1. JesseT

    JesseT Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    204
    Location:
    Sydney
    I have recently been considering updating my car and just had some questions regarding whether or not I am in the position to be able to claim the expenses.

    I am employed full time PAYG as a heavy vehicle mechanic and currently claim travel to and from work for carrying tools.

    I also operate under my ABN privately in spare time, maybe only $2,000 income a year but I require a ute for this work. (Mobile mechanic) I could increase this if necessary.

    Is there a threshold of business income/operating hours in order to be able to register the vehicle for business use and claim all the expenses?

    As an investor I will avoid bad debt at all costs but if I was able to purchase a 'new' used car with a line of credit (split from the PPOR) and claim the expenses legally, I sure could do with an upgrade.
     
    JesseT, 21st May, 2016
    #1
  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,353
    Location:
    Perth
    As far as I know you could only claim the percentage that is ACTUALLY business use. So if you only use it for 5hrs a week for your business and 20hrs privately then it's 25% claimable.
    You really would only be able to claim if you only use it for your company.
    I'm not an accountant - you get my 2 cents advice free :)
     
    Westminster, 21st May, 2016
    #2
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