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Re: Depreciation Cost Limit on Ute

Initiate

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Replies 2

Could I please clarify whether a ute purchased for $70,000 would be subject to the depreciation cost limit.

 

The vehicle in question is an HSV Maloo with a payload of 689kg.  I am wondering whether you can use the same calculations as for the FBT load carrying capacity (Number of passengers x 68Kg etc) to determine that it is a commercial vehicle or whether they are two different issues?

 

Thank you.

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Devotee Registered Tax Practitioner

Replies 1

Could I please clarify whether a ute purchased for $70,000 would be subject to the depreciation cost limit.

 

The vehicle in question is an HSV Maloo with a payload of 689kg. I am wondering whether you can use the same calculations as for the FBT load carrying capacity (Number of passengers x 68Kg etc) to determine that it is a commercial vehicle or whether they are two different issues?

 

I think that model is properly treated as a car, and would rely on the link below instead of FBT law.

https://www.ato.gov.au/General/Tradies---be-certain-about-what-you-can-claim/

 

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Most helpful response

Devotee Registered Tax Practitioner

Replies 1

Could I please clarify whether a ute purchased for $70,000 would be subject to the depreciation cost limit.

 

The vehicle in question is an HSV Maloo with a payload of 689kg. I am wondering whether you can use the same calculations as for the FBT load carrying capacity (Number of passengers x 68Kg etc) to determine that it is a commercial vehicle or whether they are two different issues?

 

I think that model is properly treated as a car, and would rely on the link below instead of FBT law.

https://www.ato.gov.au/General/Tradies---be-certain-about-what-you-can-claim/

 

Initiate

Replies 0

Thank you for the response.  It is what I thought.