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raminhbb(Newbie)Newbie
24 July 2024

Hi,


I have a full-time job with a $130k salary and will pay $32,388 in the 2024-2025 financial year. I have decided to buy a new car costing $40k for working with Uber as a second part-time job. I have some questions regarding tax concepts:


1) Can I claim the cost of the new car for the next tax return?


2) Is there any limitation on income earned from Uber to claim the car as a business asset? For example, if I earn $10k during the year by working with Uber, can I still claim the car?


3) If the car is dedicated solely for Uber use (I have another car for private use), can I claim the entire $40k cost in one financial year, or do I need to spread it over several financial years?


4) How will my tax be calculated if I earn $130k from my full-time job and $10k from Uber (totally $140k income), and spend $40k on buying a car for business?


Thank you for your assistance.

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3 replies

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Bruce4Tax(Taxicorn)Taxicorn
24 July 2024

  1. Claim depreciation x log book %
  2. Yes, but non-comm losses may apply - see below
  3. No - see # 1 above
  4. Non-comm loss rules will apply, so business loss deferred to later year

https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/losses/non-commercial-losses


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raminhbb(Newbie)Newbie
5 Aug 2024

Thank you @Bruce4Tax for your reply, I really apprecaite it


what about If I purchase a new car for $20K + $2K GST, totaling $22K:


1- Can I claim the entire $20K as an Instant Asset Write-off in my next tax return (2024-2025)? and $2k GST in next 3 months GST period?


2- If yes, does this $20K tax deduction apply to my total income? For example, with a $130K full-time job + approximately $10K in Uber income = $140K, would the $20K tax deduction reduce my taxable income to $120K? Is that correct?


3- I read the article on non-commercial losses, but I'm not sure if it applies to my situation. Could you clarify?


Thank you for your time

Bruce4Tax(Taxicorn)Taxicorn
5 Aug 2024

  1. has to be less than 20,000 after excluding GST claimed
  2. depends on whether you can pass one of the non-comm loss tests
  3. if you started UBER after 31/12/2023, then you would pass the 20 K turnover test - 20 K pro-rata

Best to go to a local tax agent if you don't know what to do.


https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off?=redirected_instantassetwriteoff


Liked by raminhbb

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Tax Deductions Regarding Purchase of a New Car for Uber | ATO Community