Claim Drone As Tax Deduction For Job

kieron212 on 06/02/2018 - 11:27

Hi All,

Just wondering if anyone has claimed a drone as a tax deduction for work. I work in construction and we use drones to check various sites, however currently at one of the projects we don't have access to one.

Is one able to buy a drone and claim it as a work related expense as the drone is of no use for me outside of work.

Also what kind of proof do you need when claiming this type of item as I would expect you need more than just a receipt.

I could get the company to get a new drone, however it would useful to have if I end up moving jobs.

Thanks for the input..

Financial

Comments

  • 87percent on 06/02/2018 - 11:46
    +11

    "no use for me outside of work"… yeah right

    • Donaldhump on 06/02/2018 - 12:58

      an ato worker will come look for you on the weekends.

      one of my mates claimed scratchies on tax when we were 18. he got bent over by the ato, albeit it was 100% dumb

      • realfancyman on 06/02/2018 - 19:12

        Scratchies is just asking to get caught, this is a legitimate work expense

  • nayfon on 06/02/2018 - 11:53

    Yep, but you'll need to depreciate it over 2-3 years. As you said it's 100% for work you can deduct the whole amount, but if you intend to use it privately then you'll only be able to deduct a percentage of it.

    If you get audited, it will be easier for you to show it's for work purposes due to your construction job (I'm guessing to survey the property / building).

    • Seraphin7 on 06/02/2018 - 11:55

      Has the $20k instant depreciation rule gone?

      • nayfon on 06/02/2018 - 12:33
        +1

        That only applies to small business owners, not personal income tax refunds.

      • dasher86 on 06/02/2018 - 12:54

        OP hasn't stated if they are an individual or small business.

    • kieron212 on 06/02/2018 - 11:59
      +1

      Thanks for the input. I take it a simple logbook of its use for work vs at home would suffice?

      • nayfon on 06/02/2018 - 12:34
        +1

        Yep, that is perfect in the eyes of the ATO.

      • theHMASfriendship on 07/02/2018 - 09:17

        Yep that would give the ATO a roaring hard-on

    • Islund on 06/02/2018 - 12:06

      Is it not possible to buy 'parts' of the drone for under $300 per part and then claim it all within the one year?

      Disclaimer : never did tax law

      • Davo1111 on 06/02/2018 - 12:43
        +1

        It's a percentage. So i'd be willing to bet it's still the same percentage of $300 or $1000 with electronic products.

        Disclaimer : never did tax law

        • blitz on 06/02/2018 - 12:54
          +3

          Thanks

          Disclaimer : never did tax law

        • Islund on 06/02/2018 - 15:29
          +1

          bustards

  • pjetson on 06/02/2018 - 12:24
    +1

    I suspect that you'd be able to claim the drone under the "Tools, equipment and other assets" category. And only be able to claim depreciation, not the capital cost.

    But you really should be talking to a tax accountant.

    Edit: You may need to consider public liability insurance, too.

    • singlemalt72 on 06/02/2018 - 12:29
      +2

      You also need to consider legal requirements when using a drone for work, eg. you may need to be licenced to do so. When it comes to a tax audit they may want to see that you have a RePL to prove it is being used for work.

      https://www.casa.gov.au/standard-page/commercial-unmanned-fl…

      • blitz on 06/02/2018 - 12:53

        Relevant!

        "If you fly a drone (remotely piloted aircraft) RPA under 2kg but for commercial reasons, you can fly your drone in what is called the 'excluded' category.

        This means you'll need to notify us before you fly and operate within the standard operating conditions.

        If you want to fly outside these operating conditions, you will need to be licensed (hold a remote pilot's licence RePL) and fly with a certified operator to fly commercially."

    • redforever on 06/02/2018 - 12:37
      +1

      +1. Public liability insurance should be your priority. Not sure if you will be covered if work didnt provide it.

      Make sure you get approval from your company if you end up getting one yourself.

  • bobbified on 06/02/2018 - 16:14

    It's no different to any other work equipment that you would use for work.

    I think the question is, is there a reason why you think it's not tax deductible?

  • wordplay on 06/02/2018 - 18:27

    do you need a license if you are flying a drone for payed work?
    edit: looked it up, "as of 29 September 2016, small operators can conduct commercial work without an operator's certificate or remote pilot license. If you have a drone under 2kg and want to do commercial work, you won't have to apply for the $5,000 to $10,000 "Unmanned Aircraft Operators Certificate" in order to do so — but you will need to inform the Civil Aviation Safety Authority (CASA) with a once-off registration."

    Hope thats still current, if so might be getting a drone to claim off tax (to only use for work).

  • havabeer on 07/02/2018 - 10:53

    If you purchase it using company funds I can't imagine any reason why you couldn't. If you also have a licensed operator then you're not going to have an issue at all.

  • Ken1977 on 07/02/2018 - 14:09

    I've purchased one for work purposes and claimed it. Account said no worries. I work in property maintenance and it's good for checking a roof without climbing up there. I've used it on weekends too, but I consider this training.

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