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carrott(Newbie)Newbie
26 Feb 2024

Hi,


Suppose there's an existing sole trader who acquired a second hand vehicle interstate from a private seller, with the intention to carry out a new type of business relying on said vehicle.


The sole trader started using the vehicle immediately, completing a few business trips. However when they tried to transfer the rego of the vehicle, it cannot pass a rego check - unless significant repairs are carried out (~10k).


Questions:

1. Can the repair amount (with tax invoice proof) be claimed as business expense?

2. Using the Logbook Method, the business-use percentage would be ~100% - can the sole trader claim the full repair cost?


Your advice is appreciated, thanks.



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Most helpful reply

AnitaATO(Community Support)Community Support
29 Feb 2024

Hey @carrott,


1. Yes, if the vehicle is used solely for business, then you'll be able to claim the total of the repair bill. If the vehicle is used at all for personal use, then you'll need to apportion the expense and you can only claim the business percentage of the repair bill.


2. Using the logbook method, you'll need to make sure you log everything correctly and keep receipts.


You can check out more about the expenses you can claim on our website.

All replies

Most helpful reply

AnitaATO(Community Support)Community Support
29 Feb 2024

Hey @carrott,


1. Yes, if the vehicle is used solely for business, then you'll be able to claim the total of the repair bill. If the vehicle is used at all for personal use, then you'll need to apportion the expense and you can only claim the business percentage of the repair bill.


2. Using the logbook method, you'll need to make sure you log everything correctly and keep receipts.


You can check out more about the expenses you can claim on our website.

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Sole Trader Motor Vehicle Expense | ATO Community