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Asset write-off of Motor Vehicle For Sole Trader

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Newbie

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Hi all, I am a sole trader and rely on the use of a motor vehicle to complete the jobs. If I acquire a motor vehicle new or used under 30,000 before July 2020, would this be an instant write-off which I can claim? Also is there a specific type of vehicle or brand I must select to be eligible?

 

I am not required to register for GST so I am have not registered.

 

Thank you for your time.

 

 

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Most helpful response

Taxicorn

Replies 1

@DavidVo 

 

Yes you can but only by the Business use that you would have established in your Logbook.

 

Note, this will reduce your Business income and can not generally be used to offset any personal income.

 

Sometimes, especially when first starting a business, it is better to depreciate it for a few years and then write it off, else you will be carrying forward a loss and may not see any benefit

2 REPLIES 2

Most helpful response

Taxicorn

Replies 1

@DavidVo 

 

Yes you can but only by the Business use that you would have established in your Logbook.

 

Note, this will reduce your Business income and can not generally be used to offset any personal income.

 

Sometimes, especially when first starting a business, it is better to depreciate it for a few years and then write it off, else you will be carrying forward a loss and may not see any benefit

Community Moderator

Replies 0

Hi @DavidVo,

 

Here is a link to the information that @macfanboy has advised.

 

Thanks

 

KylieS