Claim half your vehicle cost as a tax dedn

[Racecraft]

Originally Posted by ILLaViTaR

He didn't start it.

Simply inherited it from his parents.

the more you type about this , the more the green envy shows thru. Some people get a kick start, some have to battle to make it.. If you put as much thought into advancing yourself as moaning about your neighbours and everyone else that gave something a shot you might surprise yourself with success.

[Joe5619]

Originally Posted by flappist

You are an accountant and you make these sort of posts?????

What sort of accountant?

CPA?
NIA?
Senior partner of KPMG maybe?

I can tell you I'm not a tax accountant becuase I hate tax law with every part of my body!!

[Joe5619]

Originally Posted by flappist

Well you can do it too. Get out there and make your stand.

A man of your ability and intelligence could make millions, it is easy, no risk, no worries.
It is just like your current job. 9-5 5 days a week. If you get sick or hurt yourself you just wait until you are better to keep going.
You can take holidays whenever you like and even pay yourself loading if you feel it is appropriate.
Your wages are guaranteed because no one will ever just not pay you for whatever reason.
You won't ever have to pay insurance, government licences and fees, permits
You won't have to worry over weekends about angry idiots who are on PAYG and are upset that you have bought something that they cannot afford despite you having not had a day off in 10 years and work 80 hours a week.
You won't have to get home from a hard day of labour to sit down to several hours of paper work including preparing BAS.

AND MOST IMPORTANTLY you won't have to put up with angry customers because your employees just walked out at 5pm rather than spend another hour finishing the job so they could meet all their mates at the pub for a beer.

Hang on, yes you will.

Of course if for whatever reason your business suddenly goes bad, maybe due to absolutely NOTHING to do with you personally like government legislation (like my gun shop) or a major multinational opening up next to you (like a friend of mine's video shop and another's sports store) or just local government stupidity (like another friend of mines aviation business) and you find you owe lots of money, have no income and then lose everything including your house you may not be so happy about the "free" car.

OR

Do you just want to stay an employee, have all the security and perks of 4 weeks paid holidays, sickies, unfair dismissal laws, 37 hour week, overtime, minimum wage guarantee, public holidays and weekends off and all those things you take for granted and just whinge about it on a car forum that it is unfair that you do not get 50% off your car?

You decission...........

I dont mean to be rude, but you make out as if being an employee is a peice of p..s. It is not for all people & is just as much hard work as owning youe own busines. If you think it is so easy, sell your business & become an empolyee instead of whinge yourself!!

[Racecraft]

Originally Posted by Joe5619

I dont mean to be rude, but you make out as if being an employee is a peice of p..s. It is not for all people & is just as much hard work as owning youe own busines. If you think it is so easy, sell your business & become an empolyee instead of whinge yourself!!

If every small business owner did that, who'd be left to employ you???

[4Vman]

Originally Posted by Joe5619

I dont mean to be rude, but you make out as if being an employee is a peice of p..s. It is not for all people & is just as much hard work as owning youe own busines. If you think it is so easy, sell your business & become an empolyee instead of whinge yourself!!

We need both.. without "indians" there's no need for "chiefs" and vice versa....
I do get tired of the constant grizzling of typical 9-5 "takers" who do the minimum and expect everything in their lap, then begrudge those who work hard, take a risk and get the rewards....

[BIGJB]

This is totally off topic from op.
But I have to add my two cents.
I am a business owner. I have over the years worked for myself a few times.
As a general rule I have bought "doomed businesses" built
them up over a couple of years and sold them for a reasonable profit.
Sort of like buying crap houses and doing em up.
For all the people out there that are saying that business owners get to
much take a step back hey.
Everytime I have brought a business I have put my financial life on the line.
Many times I have sat there at the end of a 100hr week and gone to myself
"what have I done".
Until you go out there and try and do it yourself you have no @#$%^%$ idea
how hard it is and what a stress is involved.
We recently moved form OZ to NZ. We sold everything we owned to open
our 1st business here. All the locals we spoke to said we would fail as many
have tried to start this type of business here and all have failed, yet we
still gave it a go. All of this was off our own money, we have nothing except
the company. Here we are 5 months down the track. The company has grown
from 1 business to 2 and I am in the process of opening the 3rd one.
All of this means mysellf and my wife are working 85-95 hrs a week
and only paying ourselves the princely sum of about 200 a week each.
My wife works else where part time for $180 a week which covers our
home rent. This is something I don't see changing in the next year
maybe 2. But at this point our employees earn almost 3 times what we do.
So for all of you that complain about what "tax breaks" business owners
get until you have made the sacrifices that we make when we put our LIVES
on the line you are in no position at all to comment and quite frankly
you have no idea at all what you are talking about.
Sorry to op for hyjacking thread but it needed to be said.

[Racecraft]

Originally Posted by 99GHIA

This is totally off topic from op.
But I have to add my two cents.
I am a business owner. I have over the years worked for myself a few times.
As a general rule I have bought "doomed businesses" built
them up over a couple of years and sold them for a reasonable profit.
Sort of like buying crap houses and doing em up.
For all the people out there that are saying that business owners get to
much take a step back hey.
Everytime I have brought a business I have put my financial life on the line.
Many times I have sat there at the end of a 100hr week and gone to myself
"what have I done".
Until you go out there and try and do it yourself you have no @#$%^%$ idea
how hard it is and what a stress is involved.
We recently moved form OZ to NZ. We sold everything we owned to open
our 1st business here. All the locals we spoke to said we would fail as many
have tried to start this type of business here and all have failed, yet we
still gave it a go. All of this was off our own money, we have nothing except
the company. Here we are 5 months down the track. The company has grown
from 1 business to 2 and I am in the process of opening the 3rd one.
All of this means mysellf and my wife are working 85-95 hrs a week
and only paying ourselves the princely sum of about 200 a week each.
My wife works else where part time for $180 a week which covers our
home rent. This is something I don't see changing in the next year
maybe 2. But at this point our employees earn almost 3 times what we do.
So for all of you that complain about what "tax breaks" business owners
get until you have made the sacrifices that we make when we put our LIVES
on the line you are in no position at all to comment and quite frankly
you have no idea at all what you are talking about.
Sorry to op for hyjacking thread but it needed to be said.

I can work 80 hours a week and lose money.. Not so flash for the bank balance, even worse for the morale.

[BIGJB]

Originally Posted by Racecraft

I can work 80 hours a week and loose money.. Not so flash for the bank balance, even worse for the morale.

Mate I here ya. I had a business once that i was workin for
20hrs a day only to lose about $100 a week.
Thank god I got an out or it would've ended in tears for me.
This is the side of things that the average 9-5 will never ever understand.

[Rodp]

Originally Posted by Joe5619

I dont mean to be rude, but you make out as if being an employee is a peice of p..s. It is not for all people & is just as much hard work as owning youe own busines. If you think it is so easy, sell your business & become an empolyee instead of whinge yourself!!

Are you sure you're an accountant?!

It's just as much hard work?!? I guess it depends on how much you put into it. I was a part owner in a small business and the work hours I had to put in just to break even wasn't worth it to me. I work to live not live to work.

While I often work long hours in my current job (and get to claim my car as a tax deduction : ). When I turn my mobile off, I don't have to think about work. I'm on my last day of a 6 week holiday :( and I haven't read a single email or turned on my work phone once even though I know there's going to be a ton of SMS's, voice mails and emails from managers and customers on there, and many of them to deal with critical/urgent issues.

The difference between the two is that if I was an owner in a business, I could never afford to neglect the business for 6 weeks straight. As an employee, those urgent issues will have to wait until I turn on my mobile and log into the corporate network on Monday... and regardless of how urgent or critical those problems are, not a single negative word will be uttered to me simply because I was on a paid leave.

[Joe5619]

Originally Posted by Racecraft

If every small business owner did that, who'd be left to employ you???

I know that, but for someone to say "I have it easy" becuase I'm an employee & they work harder beucase they are an Owner is BS.

have I loged onto ford forums or "Busines Owners r us"?

[flappist]

Originally Posted by Joe5619

I know that, but for someone to say "I have it easy" becuase I'm an employee & they work harder beucase they are an Owner is BS.

have I loged onto ford forums or "Busines Owners r us"?

No it is not "You have it easy" it is you are whinging that someone else is getting something that you are not without you realising that you get many things that others do not.

The majority of business owners do it because they WANT to.

My employees don't have to worry on weekends or at night, they just have to do their job during work hours. On the other hand they don't drive new cars every couple of years and have a house full of toys and gadgets. They go camping or wander off on cruises or trips to overseas holiday tourist destinations, play or watch sports, fish, spend quiet time with their family etc.
I work most days and have a very occaisional weekend off and maybe a couple of days attached to a business trip. That is my choice.

As far as my "free" cars. I have 34,000km on my 1 year old 350z, my F6 had 105,000km at 2y10m and my GT-P 85,000km at 1y11m.

If I did not drive so much for work all the tax deductions in the world world be irrelevent as I could not claim them and would also have to pay fringe benefits tax.

Maybe it might be a good idea to ask a tax accountant about a subject that concerns tax next time before you make a "pseudo expert" comment about it denoting your profession.

[SE Ute]

Originally Posted by myts

It comes back to whether the car yard depreciated to vehicle or not. If they have made a claim for depreciation on the ATO, you can't. This avoids double dipping. I don't know of a dealer who would do that.

If the car yard has not depreciated the vehicle to the ATO (the normal situation) the vehicle is treated as new stock under the legislation considered "new". The ATO does not care if someone got their lunch in it they just don't want to pay twice.

This is from the explanatory memorandum to the Tax Laws AMENDMENT (Small Business and General Business Tax Break) Bill 2009


Further, an asset will still be considered to be new if it has only been used for the purposes of reasonable testing and trialling (by any entity). [Schedule 1, item 4, subsection 41-20(2)]

Example 1.5

Belinda is contemplating the purchase of a ‘demonstrator’ vehicle from a dealer for $25,000 to use in her business. Although the dealer had acquired the car new from the factory, he would regularly use the car to drive to and from work. The prior use by the car dealer does not constitute reasonable testing and trialling of the car. Therefore the car is not considered new and Belinda would not be eligible to claim the Tax Break for the car.
http://parlinfo.aph.gov.au/parlInfo/...6a722%22;rec=0

[Gobes32]

Forgive my naivety, but why on earth is there such a battle between the PAYG employees and the small business owners? The small business owner takes a chance, borrows some money and builds a (hopefully) viable business. He/she will earn little to no pay in the first few years even though their employees are being payed award wages. BUT, if the business succeeds then inevitably the profits will come, as the business grows it will hopefully become less dependent on the owner working the silly hours they were at the start. One day, after many years the owner may even sell the business for a considerable sum, they may even hand the business over to their children, each scenario has it's own merits. If, after many years, you are still paying yourself $200 a week and working 20+ hours a day, then your business is unviable and you should get out while you syill have the clothes on your back.

I am a PAYG employee because it suits my nature/lifestyle. I don't care much for stress nor do I envy people in BMW's etc. Therefore it would be foolish of me to own my own business. I work for a fantastic company who pay their employees well. My supervisor earns nearly 50% more than me but has a lot larger workload and he deserves the extra cash. I know I couldn't do his job.

People need to learn their place in life. We can't all be Doctors and Lawyers. Some people are just born destined to be a worker. I guess it all depends how much "drive" you have. The trick is to accept it and make the best of your situation.

[ILLaViTaR]

Originally Posted by Racecraft

the more you type about this , the more the green envy shows thru. Some people get a kick start, some have to battle to make it.. If you put as much thought into advancing yourself as moaning about your neighbours and everyone else that gave something a shot you might surprise yourself with success.

Not envy. Frustration due to how imbalanced the 2 career types are.

if these business paid tax instead of claiming it all back, then tax would be cheaper for everyone.

Paperwork pfffft, you can pay someone to do most of it and claim their fee back the following year!

I'd also say the benefits far outweigh the extra work put in.
My boss claims back more than the average person makes a year (which is around 1920hrs of yearly labour for the average worker to make that same amount).

[ILLaViTaR]

Originally Posted by flappist

Well you can do it too. Get out there and make your stand.

A man of your ability and intelligence could make millions, it is easy, no risk, no worries.
It is just like your current job. 9-5 5 days a week. If you get sick or hurt yourself you just wait until you are better to keep going.
You can take holidays whenever you like and even pay yourself loading if you feel it is appropriate.
Your wages are guaranteed because no one will ever just not pay you for whatever reason.
You won't ever have to pay insurance, government licences and fees, permits
You won't have to worry over weekends about angry idiots who are on PAYG and are upset that you have bought something that they cannot afford despite you having not had a day off in 10 years and work 80 hours a week.
You won't have to get home from a hard day of labour to sit down to several hours of paper work including preparing BAS.

AND MOST IMPORTANTLY you won't have to put up with angry customers because your employees just walked out at 5pm rather than spend another hour finishing the job so they could meet all their mates at the pub for a beer.

Hang on, yes you will.

Of course if for whatever reason your business suddenly goes bad, maybe due to absolutely NOTHING to do with you personally like government legislation (like my gun shop) or a major multinational opening up next to you (like a friend of mine's video shop and another's sports store) or just local government stupidity (like another friend of mines aviation business) and you find you owe lots of money, have no income and then lose everything including your house you may not be so happy about the "free" car.

OR

Do you just want to stay an employee, have all the security and perks of 4 weeks paid holidays, sickies, unfair dismissal laws, 37 hour week, overtime, minimum wage guarantee, public holidays and weekends off and all those things you take for granted and just whinge about it on a car forum that it is unfair that you do not get 50% off your car?

You decission...........

All holiday leave must be approved by your superior, you DO NOT get them when you please, and it's very hard to get ideal time off.

Yes it is unfair anyway would take a half price car over all those things. My boss has 0 risk, he brought into a franchise, I work more than him, when he does come in he just reads emails. No risk, no worries applies to him.

It is my decision and I'm 19 don't have a family to worry about and will be starting a local business very shortly with 2 mates. I've also had an online business in the past. The benefits of a business outweigh being an employee tremendously, and I must be a sucker to not get in on it. Unlike my boss though I will not be buying into a franchise, so there's risk involved, which we're trying to reduce by starting off slowly. Some people (like my father) how ever could not afford to take risk (family of 6/mortgage etc) so he didn't have the option and had to settle for the shorter end of the bon bon.

It's unfair, just because everyone is capable of starting some form of business doesn't make it fair, many people already have it set up for them and it's far far more practical for many people too than it is to others, kind of making it not fair.

[Work Horse]

Originally Posted by ILLaViTaR

It is my decision and I'm 19 don't have a family to worry about and will be starting a local business very shortly with 2 mates. I've also had an online business in the past.

I wish you luck mate but feel you may be in for a very rude shock.

[xtremerus]

ILLavITaR
Good luck also.
If you are going into business with your 2 mates, please all go and do a short business course, so you understand all the compliance/tax etc issues regards partnership/company set-ups, or you will fail and lose a lot.
PS If you think that a franchise is Zero risk, than you are off to a bad start. Do your homework.

[flappist]

Originally Posted by ILLaViTaR

All holiday leave must be approved by your superior, you DO NOT get them when you please, and it's very hard to get ideal time off.

Yes it is unfair anyway would take a half price car over all those things. My boss has 0 risk, he brought into a franchise, I work more than him, when he does come in he just reads emails. No risk, no worries applies to him.

It is my decision and I'm 19 don't have a family to worry about and will be starting a local business very shortly with 2 mates. I've also had an online business in the past. The benefits of a business outweigh being an employee tremendously, and I must be a sucker to not get in on it. Unlike my boss though I will not be buying into a franchise, so there's risk involved, which we're trying to reduce by starting off slowly. Some people (like my father) how ever could not afford to take risk (family of 6/mortgage etc) so he didn't have the option and had to settle for the shorter end of the bon bon.

It's unfair, just because everyone is capable of starting some form of business doesn't make it fair, many people already have it set up for them and it's far far more practical for many people too than it is to others, kind of making it not fair.

First thing you need to do is save up and buy a CLUE, you obviously don't have one.

[Falcon Coupe]

Enough of the business owner vs employees, back to the topic or this is over.

[gu4800]

Originally Posted by gu4800

I'm no accountant, but I'm fairly sure you can claim the full 15% regardless of when you acquired the asset. So purchase before June 30, 15% would be your minimum depreciation for this year. The only adjustment would be for business/personal use, but assuming 100% business then you get the full 15% - NOT pro-rata.

Any one else shed any light on this?

Cheers

Dan

From the ATO website:

Simplified depreciation rules - overview

In general, you can:

* immediately write off most depreciating assets costing less than $1,000 each (low-cost assets)
* pool in a general small business pool and deduct at the rate of 30% most other depreciating assets with an effective life of less than 25 years, such as motor vehicles and computers
* pool in a long-life small business pool and deduct at the rate of 5% most depreciating assets with an effective life of 25 years or more, such as wharves and cement silos, and
* deduct most newly acquired assets at either 15% or 2.5% in the first year, regardless of when they were acquired during that year.

Further EDIT:

If you can claim 22.5% on a motor vehicle, then why even have the 15% rule? I am fairly sure you can claim either 15% flat out or 22.5% for the period you owned it - whatever give you the greatest deduction.

So, if you buy a car 1 June you would take the 15% rule. Your choice would be 15% straight deduction OR 22.5% / 365 (days) x 30 (days). Obviously 15% straight out gives you the better deduction.

Yes, while are back on topic for this very brief moment, do any of the "accountants" amongst us want to clarify the above.

Cheers

Dan

[rodderz]

zero risk....lol

So who was the person who put quite a considerable amount of savings into said franchise, maybe even put the house up as insurance for it, with the risk of losing it all should the business go bad?

Off with the fairies!

[YOOT]

Correct me if I am wrong but you can't claim more than 100% of the assets cost over its life span. So if you can get a 50% claim this year you can only claim the remaining 50% over the life of the item? Thus there is no extra saving, its just a system designed to move forward the money to now at a time where people need it to keep the economy growing. Later on there will be less savings on that item, but presumably business will be better because the economy should have grown.

[Crazed]

Originally Posted by YOOT

Correct me if I am wrong but you can't claim more than 100% of the assets cost over its life span. So if you can get a 50% claim this year you can only claim the remaining 50% over the life of the item? Thus there is no extra saving, its just a system designed to move forward the money to now at a time where people need it to keep the economy growing. Later on there will be less savings on that item, but presumably business will be better because the economy should have grown.

Im pretty sure the upfront 50% investment allowance is a 'bonus' so you effectively get a 150% deduction over the vehicle's depreciable life.

[GT0132]

Originally Posted by Crazed

Im pretty sure the upfront 50% investment allowance is a 'bonus' so you effectively get a 150% deduction over the vehicle's depreciable life.

what he said :sm_headba

[Dave_au]

Originally Posted by gu4800

Yes, while are back on topic for this very brief moment, do any of the "accountants" amongst us want to clarify the above.

Cheers

Dan

I think I answered it all in my post ages back.......

http://www.fordforums.com.au/showpos...3&postcount=19