When can you apply instant write-off for personal vehicles used for business?
I'm running a tourism business which has a turnover of about $60,000 a year. I have my own vehicle (still on finance) and use it 100% for business purposes. How do I apply instant write off to it?
Do I have to finish the finance first before I can write it off? When do I need to pay off the vehicle?
You would need to make sure you meet the small business entity rules (which it sounds like you do).
The purchase price of the car (or the written down value if you have owned for more than 1 year) will determine if you can immediately write off the purchase. Depending on when the car was purchased the threshold may be either $20k, $25k or $30k.
As long as you have title over the car you will not need to have paid it off to claim depreciation.
Let me know if you need any extra help.
Adam @ Upside Accounting
Assuming you meet the SBE rules and the write off amount is up to the limit at the time (three different thresholds with three separate dates in the past financial year), you can write it off immediately. You do not depreciateit.
if it's an existing asset that you are carrying forward, it need to go to a Small Business Pool whereby if the total is under the threshold you can then write it off.
Am happy to have a chat.
(PS I hope you are not doing your own tax, it is worth the price of paying an accountant to get the correct deductions).