Of course, the car must be used in your business, and you should be aware that Fringe Benefits Tax (FBT) may apply if you allow your employees to use the car for private purposes…
The basics relating to this tax deduction are:
- that the asset must cost less than $20,000 (after claiming any GCT)
- the asset can be either new or second hand
- the acquisition date must be after 7.30pm on 12th May, 2015
- the assets must be acquired before 30th June, 2017
When operating a business, often the most effective means of claiming your motor vehicle expenses is via the log book method. In this case you should remember that you need to detail your travel for a continuous period of 12 weeks including the dates of travel, odometer readings at the start and end of each trip, the kilometres travelled and the reason for the trip…always keeping in mind that travel from home to work (and back again) is generally private in nature.
If you decide to buy a car for your business, let me know what you get – I love cars!