Purchasing a car - depreciation from tax

Discussion in 'Accounting & Tax' started by thesuperman, 18th Feb, 2017.

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  1. thesuperman

    thesuperman Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    460
    Location:
    Australia
    If you buy a car that will be solely used as part of your job, is there any difference between buying a new or used car from a tax point of view? How many years can a car be depreciated and is it like a property where you can use diminishing value or prime cost? Thinking about a used car as you can pick up a 2-3 year old car for about 40% less than new price (depending on the kms travelled), more bang for buck.
     
    thesuperman, 18th Feb, 2017
    #1
  2. Ross Forrester

    Ross Forrester Well-Known Member

    Joined:
    30th Oct, 2016
    Posts:
    2,085
    Location:
    Perth, Western Australia
    Tax law does not differentiate between new cars and old cars.

    If the price is more than $55k (and a bit) your deductions are limited.

    You can choose between DV or PC

    Work to home and back is private.

    Keep a log book.
     
    Ross Forrester, 18th Feb, 2017
    #2