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Buy second hand car for carsharing - is depreciation allowed

Newbie

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Hi ATO community

 

I am planning to buy a second hand car in my personal name (I don't have an ABN number).  The purpose of this car will be solely for rental on peer to peer carsharing platform.  I want to ask whether I can claim any depreciation against the rental income? If so, will it be in an ongoing basis?  And how can I determine the depreciation rate?

 

I have checked the ATO article on car sharing (https://www.ato.gov.au/General/The-sharing-economy-and-tax/In-detail/Peer-to-peer-car-sharing/) and run thru the community, but seems there is not much info on depreciation aspects. 

 

Appreciate your insights!

 

 

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Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @Mirai731

 

You'll be running a business in this way, and included in allowable deductions for asset sharing is depreciation.

 

You can claim a deduction for a depreciation of business assets. Under temporary full expensing, you can claim eligible second-hand depreciating assets if your turnover is less than $50m.

 

You can read more about temporary full expensing on our website.

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @Mirai731

 

You'll be running a business in this way, and included in allowable deductions for asset sharing is depreciation.

 

You can claim a deduction for a depreciation of business assets. Under temporary full expensing, you can claim eligible second-hand depreciating assets if your turnover is less than $50m.

 

You can read more about temporary full expensing on our website.