Claiming a resto as a business expense...

hrastovica Officially Full-On Dubber

361 posts · joined Apr 2009 · 21 Feb 2015, 4:23 am

#1008702

Ok so straight up, when it comes to taxation i am a complete idiot.

Over the last week i have been doing my tax for the last 2 years (still have another 2 to go), and couldnt help but notice how much money i have pumped into my car.

Knowing that there is still a fair way to go, is there a way to claim the resto as a business expense (my business is Pty Ltd).

Has anyone here claimed the cost of their resto as a business expense (promo vehicle etc)?

- What are the conditions to doing this?
- Can you do it even if you arent in the automotive industry? (eg. i am a web designer/developer)
- Does this raise any eyebrows with the ATO?
- Does the car need to be registered under the business?

Bizarre Moderator The artist formerly known as blue74l

12,789 posts · joined Aug 2002 · 21 Feb 2015, 6:18 am

#1008704

it needs to be a business related use - project manager driving to sites for example
you need to do more than 5,000 kms a year
you need to have a high business to personal ratio to make it work - at least 75%

would be VERY difficult to get a non going project claimed especially if your job does not require business travel

Futue te ipsum!!!

hrastovica Officially Full-On Dubber

361 posts · joined Apr 2009 · 21 Feb 2015, 1:02 pm

#1008723

Bizarre wrote:it needs to be a business related use - project manager driving to sites for example
you need to do more than 5,000 kms a year
you need to have a high business to personal ratio to make it work - at least 75%

would be VERY difficult to get a non going project claimed especially if your job does not require business travel

I run a web development business (not a sole trader but as a company/pty ltd). It would be owned and registered by the company, and would only be used as a promo vehicle some part of the year.

Governor Wolfsburg Wizard

414 posts · joined Nov 2008 · 21 Feb 2015, 2:59 pm

#1008728

I think it would pay to actually ask an accountant!

hrastovica Officially Full-On Dubber

361 posts · joined Apr 2009 · 21 Feb 2015, 8:03 pm

#1008749

Governor wrote:I think it would pay to actually ask an accountant!

Fair call.. was interested if anyone here has done it.

h fractals - an ever changing lifestyle

7,671 posts · joined Feb 2005 · 21 Feb 2015, 8:22 pm

#1008751

you're doing your tax as a pty/ltd?
mate get to an accountant that's their job and they have the legit answers and options to give you..
If you don't like the advice find one that you like 😉

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beetleboyjeff Custom Title Time!

1,790 posts · joined Feb 2009 · 21 Feb 2015, 9:00 pm

#1008753

I claim the percentage as per the log book that I do every few years, which is usually about 90% business use. This includes when I did a fairly extensive reno on the car in about 2007, when it was off the road (but not out of rego) for nearly 6 months.

I have used the car as a work vehicle since about 1988, and a lot of people around town know I do building work because they see the bug on site quite often, or towing the trailer around town.

I also have my car sign written

and have the car on my site signs, work clothing, letterheads, etc.

All that being said, as others have said above, you still need to talk to your accountant to see if it is possible, and how to set it up if it is possible.

From your ole' mate Jeff

Yogie Moderator Custom Title Time!

1,608 posts · joined Jun 2003 · 21 Feb 2015, 9:20 pm

#1008755

Ask your accountant as they are the ones that should be the ones to confirm it. I asked about the same thing with my tax agent and he said the car needs to be registered. Then, as long as you can legitimately claim a car for business purposes, you can claim any work done it at the rate you would claim the car against tax. You have to keep a log book but that means, if it was 50% business use, you could claim 50% of the expenses. If you have 80% business use, you claim 80% of the expenses etc. None of my cars are sign written but I do use them for business so I get to claim the costs whether it is a classic or new car. This advice was about 5 years ago though so things may have changed so, like I said at the beginning, ask you accountant.

Yogie