Author: CaroATO(Community Support)Community Support 27 June 2022
Hi @chris_p,
No issues at all!
You can loan the company money.
GST and depreciation deductions is limited to the portion used for business.
To claim expenses, you'll need to meet the 3 golden rules;
- You must have spent the money yourself and weren't reimbursed.
- The expenses must directly relate to earning your income.
- You must have a record to prove it (usually a receipt).
You have the choice of 2 formulars to work out the FBT value of the vehicle.
- the statutory formula method (based on the car’s cost price), or
- the operating cost method (based on the costs of operating the car).
Check out the information on our web site that talks about working out the taxable value of a car.
Author: chris_p(Initiate)Initiate 5 July 2022
Thanks for clarifying the ability to loan the company money to purchase the vehicle.
However, in regards to the expenses and the gold rules, I understand this applies for an individual or sole trader, but if the ltd company has purchased the vehicle, does it not just claim all expenses no matter how the car is used?
The percentage of vehicle use for private or company purposes would only affect the FBT?
Author: TeddyATO(Community Support)Community Support 8 July 2022
Hello @Chris_P,
When claiming any expense for a business you are required to only claim the portion that is relevant to the business portion of use. You have to separate your private use from your business use, this is an area that people have a tendency to report incorrectly.
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