If I purchase a second hand vehicle now that was originally manufactured in 2015, would the effective life for tax purposes be 4 years (as opposed to 8 years for a new vehicle)?
Effective life of second hand vehicle for business?
orly on 22/05/2019 - 15:06
Last edited 22/05/2019 - 15:24
Last edited 22/05/2019 - 15:24
Comments
Assume say 70,000km on it.
If this is for tax purposes (assuming you are a small business entity and it's under $30k) think you can write it all off this year so no need to depreciate over its effective life.
It's for individual but part of the vehicle use will be for business so I don't believe that is applicable but thanks for the input.
So what is the total value of the asset? What is the percentage private use v personal use? Are you registered for GST?
Assume that the vehicle is bought at $25,000 second hand, 50% use for business travel, personally not registered for GST.
@orly: You could apply an instant write off of $12500.
See Simpler depreciation for small business under heading "Business vs private use"
would the effective life for tax purposes be 4 years
What did your accountant say?
Transfer your partner's vehicle to your name and claim 100% on the business vehicle.
How many km on it?