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CameronB(Newbie)Newbie
12 Mar 2023

Hi,

I have been operating as a sole trader (Uber deliveries and Gardening) this financial year and wanted to contribute my personal car to the Sole Trader business so that it could be written off under temporary full expensing.


I am aware that an asset must have been aquired after 6th of October 2020 for temporary full expensing to be allowed.


My question is, if i contribute the car to the business today, 12/03/23, will that count as the date of aquisition for the business?


Or as a sole trader are the business and me considered the same entity? So must I use the date that I actually bought the vehicle as an individual (6 years ago)?


What if I formally change the ownership of the vehicle into the ABN? Looking at the Vicroads website it seems that all of this might only work if I were transferring the vehicle into to a company (as a separate legal entity)?

1,067 views
3 replies
1,067 views
3 replies

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Most helpful reply

CaroATO(Community Support)Community Support
14 Mar 2023

Hi @CameronB,


You as a sole trader is the business, you have the ABN.


The eligibility criteria states first held by you. Unfortunately, because you first held the vehicle before 6 October 2020, you don't meet the eligibility criteria.


Were you using the car for your Uber and/or gardening work? If so, you'll need to use the date you started to use it for business purposes for depreciation purposes.


Have a look the guide to depreciating assets 2021 page10 on the right hand column on our website.

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Most helpful reply

CaroATO(Community Support)Community Support
14 Mar 2023

Hi @CameronB,


You as a sole trader is the business, you have the ABN.


The eligibility criteria states first held by you. Unfortunately, because you first held the vehicle before 6 October 2020, you don't meet the eligibility criteria.


Were you using the car for your Uber and/or gardening work? If so, you'll need to use the date you started to use it for business purposes for depreciation purposes.


Have a look the guide to depreciating assets 2021 page10 on the right hand column on our website.

CameronB(Newbie)Newbie
24 Mar 2023

@CaroATO Yes, I have been using my vehicle for uber deliveries and gardening work.


Another question - am I able to claim the portion of the vehicle expenses as per logbook percentage, for the fraction of the year that i have used it for business purposes, then buy a different car and start using it within the financial year, and continue my logbook with that car and use temporary full expensing, at the logbook percentage, for that new car?


Also - when looking at the revenue minimum of $20000 to be able write off a business loss against employment income, I understand that I can use a pro-rata revenue figure if it is deemed to be equivalent of $20000 revenue for a 12 month period. My question is:


I have had an active ABN for the entire financial year, but only been doing Lawn and Garden work since the start of March. Must I earn $20000 revenue for the financial year because the ABN has been active all year, or can I consider the time-frame that the lawn and garden business has been running (ie, March 1 - June 30 = 4 months). Therefore I can make revenue from lawn and garden work of $6667 between March 1 and June 30, which would indicate a full year earning of $20000, therefor I could write off a loss against my personal income?


Thank you!

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If I contribute my car to my sole trader business today, does that count as the date of aquisition? | ATO Community