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Working out personal car useage

Newbie

Views 57

Replies 1

I'm a sole trader and I am about to buy a new car that will be split between work and personal use. I would like to take advantage of the temporary full expensing for the business usage of the new car. If the new car is delivered in June 2021 I wouldn't be able to complete a 12 week log book to determine the personal usage of the vehicle in this financial year. It's there another way to determine personal usage? Our should I wait until next financial year to make the purchase?

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @Ajos02,

 

You will need to seek advice from a Tax Agent or Accountant on the best option for purchasing the vehicle for your business, in order to get the maximum tax advantage.

 

I can advise you that you could claim the cents per kilometre method in the 2021 financial year and then for the 2022 financial year you can change to the logbook method where you may need to adjust the opening pool balance.

 

You can find more information on temporary full expensing for motor vehicles under Assets and exclusions.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Ajos02,

 

You will need to seek advice from a Tax Agent or Accountant on the best option for purchasing the vehicle for your business, in order to get the maximum tax advantage.

 

I can advise you that you could claim the cents per kilometre method in the 2021 financial year and then for the 2022 financial year you can change to the logbook method where you may need to adjust the opening pool balance.

 

You can find more information on temporary full expensing for motor vehicles under Assets and exclusions.