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emilylv88(Champion)Champion
4 Oct 2023

Dear ATO officer & everyone,


I have a partnership client who purchased an electric car for partnership business usage in 2023FY. The cost of the car was less than the car limit in 2023FY. There are two partners in this partnership business and the two partners are husband and wife.


The purchase contract of the electric car shows the purchaser's name as the partnership's name. All is good at this stage.


However, when registering a car in NSW, a vehicle can neither be registered in more than one person's name nor in a partnership's name. In other words, in NSW, a car can only be registered in one person's name or in a company's name. So, my client had to register this new electric car in NSW for business usage under the husband's name.


So, my question is, could I:

1) claim the GST of purchasing this car in Partnership's 2023FY BAS?

2) claim the depreciation or write off this car in the 2023FY Partnership tax return?



Kindly Regards,


Emily



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2,445 views
2 replies

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DanielleATO(Community Support)Community Support
5 Oct 2023

Hi @emilylv88,


Yeah, this does happen with some organisations but at the end of the day if the vehicle is used for the partnership. We don't really mind whose name the vehicle is in. As long as you have all the documentation for expenses that are being claimed.


To answer your questions, you can claim the GST for purchasing the vehicle. You would just apportion the percentage for business and personal use.


With depreciation or writing off the asset. Again, the vehicle being in only one name should not hinder that.

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Most helpful reply

DanielleATO(Community Support)Community Support
5 Oct 2023

Hi @emilylv88,


Yeah, this does happen with some organisations but at the end of the day if the vehicle is used for the partnership. We don't really mind whose name the vehicle is in. As long as you have all the documentation for expenses that are being claimed.


To answer your questions, you can claim the GST for purchasing the vehicle. You would just apportion the percentage for business and personal use.


With depreciation or writing off the asset. Again, the vehicle being in only one name should not hinder that.

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Car purchase for Partnership business in NSW | ATO Community