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Re: Is buying a bike tax deductible- Delivery rider

Newbie

Views 3001

Replies 5

Hi,

I am looking to start riding for delivery services such as Uber Eats as a second job, as I am required to provide my own bike and am not reimbursed for this expense is the cost of a new bike tax deductible?
And if so, is there a time limit on when in the future I can claim a second bike as tax deductible if I replace the first?

Thank you.
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ATO Certified Response

ATO Community Support

Replies 4

Hi @AJ3

 

Thank you for your questions.

 

Generally if a deduction relates directly to you earning income for services you have provided then you can claim it. You can find more information about income and deductions on our website.

 

Hope this helps.

 

Ari

5 REPLIES 5

Most helpful response

ATO Certified Response

ATO Community Support

Replies 4

Hi @AJ3

 

Thank you for your questions.

 

Generally if a deduction relates directly to you earning income for services you have provided then you can claim it. You can find more information about income and deductions on our website.

 

Hope this helps.

 

Ari

Newbie

Replies 3

Hi Ari,

Thank you for your answer.

One further question, if my primary job accounts for 90% of my income and my second job accounts for 10%, are deductions for the second job against the total income tax or just for the tax paid on the 10% of the income that comes from that job?

Thank you,
Alex

Community Manager

Replies 2

Hi @AJ3,

 

The deductions would be against your total taxable income, not just the job that you incurred them against.

 

Thanks, NateH

I'm new

Replies 1

Hey @NateATO

Sorry to re-hash an old topic, but would claiming the bike against total assessable income not come with some caveats as individuals that deliver food are generally doing so as sub-contractors via a registered ABN?

I would be under the understanding that, for an individual that has earnt $2,000 income from their job as a delivery driver, where the bicycle was purchased for $5,000 (assuming that this was used 100% for the purposes of delivery income and no personal use in which case a percentage of use would need to be applied), that they would only be able to deduct $2,000 for the bike and would need roll the tax loss forward to a future year. The only way that this would not apply as I see it would be if the ABN the individual had registered for delivery of food was only active for 5 weeks of the financial year which would extrapolate to a pro rata $20,000 which would mean that the assessable income test is met? Most delivery drivers would not be able to meet any of the other 3 tests.

Just looking to clarify my understanding of the laws here.

Thanks a heap!

ATO Community Support

Replies 0

Hi @shorty23

 

Your understanding about business losses is indeed correct.

 

If you have business losses (as a sole trader) they can only be offset against other income (for example from employment) in certain circumstances.

 

Deductions as an employee can be offset against total income earned as an employee.

 

Our website has information about Offsetting business losses

 

Ari