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Re: business use car costs / other employment income

Newbie

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Hi

 

I earned $50k as an employee and my business (started this year) is on track to have assessable income of $10-15K (net income close to zero). A van in my name has logbook usage showing 76% business use. Costs will be around $5k for the car. I have been paying for the car from personal funds.

 

I am wondering what people advise re the tax side of things -  specifically if I can claim the (76% of $5k) against personal income or not? Note that I will not meet the requirement (e.g. >$20k assessable income etc) for the business to offset the loss against personal income.  

 

Depending on the answer to this, I am wondering if I have the business reimburse me for 76% of the car costs at year end and then carry the loss forward? I would ideally like it to offset the other income this year as this is more valuable to me than the loss but understand I may not be able to?

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Most helpful response

Taxicorn

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@fletcher 

 

specifically if I can claim the (76% of $5k) against personal income or not?

No because your turnover will be less than $20,000

 

You will need to reduce your business assessable income by any business related expenses incurred in that financial year.

 

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Most helpful response

Taxicorn

Replies 0

@fletcher 

 

specifically if I can claim the (76% of $5k) against personal income or not?

No because your turnover will be less than $20,000

 

You will need to reduce your business assessable income by any business related expenses incurred in that financial year.