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Re: Can someone help me with a question about the tax write off

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Hi all I think I may have posted this on another part of this site so if you’re seeing it again I apologise… I am keen to buy a vehicle for my DJ business… I really only make at the very most about 7 to $8000 a year out of it and I do pay tax and I have an ABN

 The business seems to be getting a little stronger but I do have to travel a little bit more and at the moment I’m using my own car… Which clearly is not a business vehicle…

Apart from various other things which I think the tax write off would be useful for… Is it accurate that I could buy a vehicle say around four or $5000… I have my eye one of the lChrysler PT cruiser’s for the particular purpose of this job… A little bit quirky and fun which would be ideal for my business…

If indeed I can claim the vehicle price… When does that actually get paid back to me from the taxation Department as the right off… Reason being is to buy the car now I need to take it from another account which needs to have that money back within the next month… Hopefully someone who can help

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Hi @Marlo

 

Thanks for getting in touch!

 

If you're eligible to claim the instant asset write off the amount isn't refunded to you but used to reduce your taxable income.


When you lodge your income tax return we take into account any deductions or offsets you're eligible for and work out your tax liability. If you've made a business loss, you can carry forward the loss to another financial year.


If you have further questions about the instant asset write off you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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Taxicorn

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Anything that you claim does not get paid back to you.

 

It reduces your taxable income.

 

So if you earn $8,000 per year DJ'ing then after claiming the $5,000 car your taxable income is now $3,000.

 

This is, of course, assuming that you only ever use the vehicle for DJ'ing.

 

If not and you also use it for personal use then it would then be split between the 2.

i.e. 50% personal and 50% DJ'ing would mean that only $2,500 ($5,000 x 50%) would be claimed so your taxable income would now be $5,500 ($8,000 - $2,500).

 

 

 

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ATO Certified

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Hi @Marlo

 

Thanks for getting in touch!

 

If you're eligible to claim the instant asset write off the amount isn't refunded to you but used to reduce your taxable income.


When you lodge your income tax return we take into account any deductions or offsets you're eligible for and work out your tax liability. If you've made a business loss, you can carry forward the loss to another financial year.


If you have further questions about the instant asset write off you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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