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mmgardener182(Newbie)Newbie
28 June 2024

Hi!

just after some clarification - I am a sole trader gardener (not registered for GST). I purchased a GWM Ute this financial year which I use 5/7 days a week solely for work (carrying tools and travelling to clients yards) which I have calculated to be 71% business use.


The car was purchased for $42,800 so am I correct in assuming I can claim $30,388 on my tax return for the purchase of the car? If this is correct what section do I enter it in when doing my expenses?


thanks.

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KevColl(Superuser)Superuser
28 June 2024

The car was purchased for $42,800 so am I correct in assuming I can claim $30,388 on my tax return for the purchase of the car? If this is correct what section do I enter it in when doing my expenses?

Yes the business related portion would be $30,388.00. However a vehicle is an asset and requires to be depreciated. The amount of depreciation is the expense claimed at depreciation in the business schedule.

The depreciation rate would be either 25% or 26.67% diminishing value, depending on GMV.

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Most helpful reply

KevColl(Superuser)Superuser
28 June 2024

The car was purchased for $42,800 so am I correct in assuming I can claim $30,388 on my tax return for the purchase of the car? If this is correct what section do I enter it in when doing my expenses?

Yes the business related portion would be $30,388.00. However a vehicle is an asset and requires to be depreciated. The amount of depreciation is the expense claimed at depreciation in the business schedule.

The depreciation rate would be either 25% or 26.67% diminishing value, depending on GMV.

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