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Vehicle claim on car that is not registered in my name

Newbie

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Hi Team,

I have a question to ask regarding claiming depreciation on a car.

My partner is a foreman and uses my Hilux for work purposes. He uses the car 5 days a week to transport tools and drive to job sites. 

As the car is legally in my name and I pay the finace on the car, am I able to have a private arrangement (formal document) that gives him full beneficial ownership of the car so he is able to claim depreciation?

I noticed on the ATO website it mentions that you cannot claim expense for a car that is not registered in your name however they do consider someone the owner or lesse if there is a private arrangement between you and another person.

"However, we consider you to be the owner or lessee of a car and eligible to claim expenses where a family or private arrangement made you the owner or lessee even though you were not the registered owner. For example, you can claim for a car that was given to you by another member of your family and which, although it was not registered in your name, you used as your own and for which you paid all expenses."

Can you please advise if this is possible?

Many thanks 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Newbie

Replies 0

Great thanks for your advice! I have requested an early engagement advice and will be able to discuss with a tax technician prior to submitting a private ruling.

Thanks again

2 REPLIES 2

Enthusiast

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@Aimee1990 

 

This is a bit of a grey area because the ATO mention " family member " and not persons that are in a relationship.

 

If you want a definitive answer then do yourself a huge favour and apply for an ATO PRIVATE RULING .....   its very easy to do and you will have something in writting from the ATO which you can rely on as its binding on the ATO, even if they make a mistake in your favour they can not do anything about it!..

 

I say that because you can not rely on information given on this forum to back you up if something goes wrong with your claim, even though it maybe " ATO certified", in fact you can not even rely on what is on the ATO website because none of it is binding on the ATO ....  if you use any information that is incorrect on the ATO website or on this forum, the ATO can still make adjustments but they will take into account any of their own errors when making adjustments, such as if to apply penalties and how much ...

 

Applying for a private ruling is easy and free and you will even get to talk to the ATO technical officer that is going to respond, if you put that in your request ..

 

.....   All the best !

 

Give the ATO a call if you want some assistance with the ruling application, .... but you probably won't need it.. 

ATO Contact us page 

 

Most helpful response

Newbie

Replies 0

Great thanks for your advice! I have requested an early engagement advice and will be able to discuss with a tax technician prior to submitting a private ruling.

Thanks again