Temporary full expensing

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kevinwu2022

(Enthusiast)Enthusiast

11 Apr 2024

Hi,

I purchased a car under my personal name in Feb 2023. This car was then used for the company's business with 85% business usage according to the car travel logbook. My question is can the company claim 85% of the car cost in 2023 tax return under the temporary full expensing method?

My accountant said that the business can only claim depreciation across the car's used life because the car is not owned under the company name so is not eligible for temporary full expensing. Is this correct?

Thanks

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Bruce4Tax

(Taxicorn)Taxicorn

11 Apr 2024

My question is can the company claim 85% of the car cost in 2023 tax return under the temporary full expensing method?

If owned, and paid for, by the company - then 100% deduction in 2023.

Registration is not proof of ownership.

But car fringe benefit will apply.

If not owned by company, then temp full expensing cannot be applied.

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Bruce4Tax

(Taxicorn)Taxicorn

11 Apr 2024

My question is can the company claim 85% of the car cost in 2023 tax return under the temporary full expensing method?

If owned, and paid for, by the company - then 100% deduction in 2023.

Registration is not proof of ownership.

But car fringe benefit will apply.

If not owned by company, then temp full expensing cannot be applied.

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Temporary full expensing

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