ATO Community

Tax break for purchase of a car

Ask a question

Newbie

Views 245

Replies 1

Tax break for purchase of a car
I run a second small business other than my normal job… It really doesn’t generate a lot of money in the year somewhere in the Vicinity of about $10,000 if that… I have a registered ABN
Here’s my situation… I want to purchase a $4000 car… Just as a vehicle to do what I do with the second job… A little bit of signwriting on it and pretty much the vehicle I used to get me to the jobs I get… It’s a DJ business… The little vehicle I’m looking at is one of the PT cruisers
You can usually pick up a reasonably good one of these around $4000… Which is absolutely ideal for what I want… What I want to know is how much does the taxation apartment allow as a complete 100% refund on this sort of situation with the new 20 grand tax break…
For example if I bought the vehicle… And put some signage on it… Makes it and it was registered insured Put a tank of fuel in it… How and when is the taxation Department pay you
The rebate… Even if we just talking for the purchase of the car alone… Is it payable virtually straight away once you have got it or do you have to wait one full financial year
1 ACCEPTED SOLUTION

Accepted Solutions

Best answer

Community Support

Replies 0

Hi @Marlo,

 

Welcome to our Community!

 

As @macfanboy as advised in your other post on our Community, 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. 

1 REPLY 1

Best answer

Community Support

Replies 0

Hi @Marlo,

 

Welcome to our Community!

 

As @macfanboy as advised in your other post on our Community, 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. 

Top Solution Authors