I am bookkeeper for all 4 of my children and 3 of them have their own Businesses - 2 of which commenced in this Financial year, so we have not had to deal with Motor Vehicle Depreciation before. All of them owned their vehicles prior to opening their businesses and, as I understand it, those of them that will be using the Log Book Method can claim Depreciation (but can't if they use the Cents/Km Method because Depreciation is already built in).
Child "A" bought her car in 2017 but only commenced claiming it for business use in the 23/24 tax year using the Log Book Method at around 87% for business-related use. We did not claim any Depreciation for it, because we didn't know how to go about it and it seemed very complicated. I gather that if we wanted to do that now, that we would have to amend her last Tax Return?
However for this year's return we would like to claim it but I need some help. I have been playing around with the ATO's Depreciation and Capital Allowances Tool to see what information is required, but I'm a bit stuck. She paid $12,000 for her car on 30/11/2017. My question is - What date do I input under "Date Acquired"? The date in 2017 that she bought the car, or the date she started using it for her business? And for "Date Asset Started to Decline in Value" - again, is that the date she bought it, or the date she started using it for her business? The car was scrapped due to expensive mechanical issues on 13/05/2025 and she got $800 for it. I've found the ATO's information on "Balancing Adjustment Offset Amount" very complicated, so I don't know what to do there either.
And I assume I use Table B - M assets - Motor Vehicles and Trailers to find it's effective life (8 years)?
I'd be so grateful if someone out there could steer me in the right direction. Thank you so much in eager expectation.
610 views
1 replies