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Log Book deductions

Newbie

Views 514

Replies 3

Hello,

I am an agricultural worker and have a kept a log book as i use my 4WD ute for work on a daily basis and I have the following questions:

- my ute has a carrying load of more than 1 tonne thereofore does the luxury car limit apply?

- I have made upgrades to my ute to be able to tow heavier equipment, does this get added to the capital cost of the vehicle & depreciated or is this not deductible?

- I also financed my ute is both the depreciation and interest element of repayments deductible?

Thank you

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @JackTax

 

The car limit of $57,581 (for the 2019–20 financial year) applies to passenger vehicles (except motor cycles or similar vehicles), designed to carry a load less than one tonne and fewer than nine passengers. It will not apply to your vehicle if its designed to carry more than a tonne.

 

Thanks, Ari

 

 

3 REPLIES 3

Former Community Support

Replies 2

Hi @JackTax ,

 

I will try and answer your answers as below :-

1) I couldnt find any connection between luxury car tax & the weight the ute can carry eg 1 tonne (as per the Small Business Newsroom article on cars and tax). If you have (quote), "Vehicles other than cars are motorcycles, scooters, vehicles with greater than one tonne carrying capacity such as trucks or heavy vehicles or a van with capacity for nine or more passengers." (bold, italics added) - as per Other travel expenses.

2) 'Improvements' to the vehicle are classed as capital costs and not directly deductible. See this ATO Community thread re: improvements to vehicle depreciated for more guidance on to account for the car improvement.

3) These two expenses you have listed eg depreciation, and interest on loan for motor vehicle, are in Claiming a tax deduction for motor vehicle expenses

Newbie

Replies 1

Thanks WainWright.

 

I may have phrased the first question wrong.

 

I am trying to determine whether to apply the cost limit of $57,581 for FY20 when depreciating the motor vehicle, should this be applied since the vehicle is designed to carry more than one tonne?

 

Appreciate the help.

 

Jack

Most helpful response

ATO Community Support

Replies 0

Hi @JackTax

 

The car limit of $57,581 (for the 2019–20 financial year) applies to passenger vehicles (except motor cycles or similar vehicles), designed to carry a load less than one tonne and fewer than nine passengers. It will not apply to your vehicle if its designed to carry more than a tonne.

 

Thanks, Ari