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LuisPena(Newbie)Newbie
12 Jan 2024

Hi, I recently open my own activity as a sole trader and there's some things that im confused with, hopefully this post will bring some light.


I bought my 2nd vehicle (work van) a couple months ago before registering my abn, so i registered it as a personal use vehicle while i was sorting out everything to start.


At this time the van has broken down 2 times, and im wondering if i will be able to deduct the expenses to fix it from my taxes, since the car is under personal use. or if i should change it to a bussiness car to do so. Thanks

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620 views
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Taxduck(Taxicorn)Taxicorn
12 Jan 2024

If you haven't yet started your business then you aren't able to claim any expenses for the work van. If your business has now started the expenses occurred before your business started can't be claimed either.

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Taxduck(Taxicorn)Taxicorn
12 Jan 2024

If you haven't yet started your business then you aren't able to claim any expenses for the work van. If your business has now started the expenses occurred before your business started can't be claimed either.

YEP(Devotee)Devotee
12 Jan 2024

No you can not claim those repairs even if you change the registration for business use as you can only claim repairs if the car (income producing assest) was been used during the course of carrying on a business and can not be an initial repair (captial)


Sun Newspapers High Court Case.. " To repair is to restore a unit of property to its former state by the remedying of defects or replacement of part during the perion in which the unit of property was income producing in the hands of the taxpayer but excludes intial repairs as they are capital in nature"

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Car tax deductions as a sole trader | ATO Community