Hi Team,
I have a question about the scenario as below : Can I please confirm if my calculations are right.
IAWO is $20,000
Scenario :
full time uber driver- sole trader purchased a car in FY2025 under finance and it is 100% business use.
Can I confirm if these case will go to the cost base for preparing depreciation ?
New Car costs : $50k ( capital cost and will be depreciated over 8 years )
Floor Mats : $200 ( capital cost and will be depreciated over 8 years )
Stamp Duty : $1130 ( capital cost and will be depreciated over 8 years )
Registration : $250 ( current expense )
CTP : $375 ( current expense )
Plate Fee : $33 ( current expense )
Finance Company Costs :
Repayments includes :
Principal cost : $150
Interest charge : $65 ( will be claimed for FY )
Account Fee :$5 ( will be claimed for FY)
Loan processing Costs :
Loan Establishment Fee : $450 ( is this a borrowing cost ? claimed over 5 years ? )
Origination Fee : $1500 ( is this a borrowing cost ? claimed over 5 years ?)
Registration of security :$10 ( is this a borrowing cost ? claimed over 5 years ? )
Questions :
1) Can he choose to claim car under small business pool 15% first year , instead of diminishing method and prime cost method.
2) or Can he chooses not to claim any depreciation method at all but only choose to claim principal repayments paid to the finance company for the car during FY.
3) Loan processing costs : do we treat them as borrowing costs to claim them over 5 years ? or we can add them to the value of car to depreciate along the car, or we can can immediately claim these costs.
4) a different scenario : What if car is second hand car and purchased for $30,000 in FY2025 , car built is 2018. what is useful life of this car, or can we choose business pool 15% now and 30% later ?
5) sorry last question : What if new car loan is under husband and wife name, wife has better credit score. but car is 100% used by husband for 100% business use (sole trader). registration and insurance everything is under husband's name and he pays all the other bills. can he claim cost of the car, interest on loan , rego and insurance etc under his sole trading business.
Thank You and really appreciate for your time.
345 views
7 replies