Hello,
I am a tradie sole trader GST registered, Im thinking of getting a new work vehicle which will be for work. An Extra Cab 4x2 Vehicle, Can I deduct the repayments to my business bank account, are these repayments expenses (should I say deductible) to the business?
Thanks in advance
Hi @JRDGRYT
Not in the way you'd think. Let's work this out.
When you purchase a new vehicle, it's a depreciating asset. How you claim a deduction for this type of asset is a little different than just claiming the repayments.
You'll need to work out if you can apply the general deprecation rules or if you're eligible to use the instant asset write-off or simplified depreciation for small business.
You'll need to know all this before you make the big purchase.
Check out all our further info on Tax deductions for depreciating assets and capital expenses.
Hi @JRDGRYT
Not in the way you'd think. Let's work this out.
When you purchase a new vehicle, it's a depreciating asset. How you claim a deduction for this type of asset is a little different than just claiming the repayments.
You'll need to work out if you can apply the general deprecation rules or if you're eligible to use the instant asset write-off or simplified depreciation for small business.
You'll need to know all this before you make the big purchase.
Check out all our further info on Tax deductions for depreciating assets and capital expenses.
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