Trailer/Ute tax deductable

Viewing 9 posts - 1 through 9 (of 9 total)

chrisaus
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@chrisaus
Join Date: 2010
Post Count: 22
July 5, 2011 - 6:44 am
Guys,
I have just purchased an investment property which is currently tennanted. I am in the market for a trailer/ute as I do all my own maintenance on the property and it's a real pain carting tools around with my 4d family sedan.
Is the purchase price of a trailer/ute tax deductable if you have an investment property?
Mick C
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@shape
Join Date: 2010
Post Count: 1,099
July 5, 2011 - 6:47 am
chrisaus wrote:
Guys,
I have just purchased an investment property which is currently tennanted. I am in the market for a trailer/ute as I do all my own maintenance on the property and it's a real pain carting tools around with my 4d family sedan.
Is the purchase price of a trailer/ute tax deductable if you have an investment property?
The question is can you prove it’s for the investment property?
ANY money you spend towards the investment property is tax deductible ; including petrol and flights
Regards Michael
Mick C | Shape Home Loans
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chrisaus
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@chrisaus
Join Date: 2010
Post Count: 22
July 5, 2011 - 6:51 am
well I just installed an air conditioner the other day and had to cart all my tools in my sedan… I'm also planning to do some gutter work soon which will require more carting of tools/parts to and from home to the investment property… what sort of proof do you need?
Mick C
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@shape
Join Date: 2010
Post Count: 1,099
July 5, 2011 - 7:11 am
Im not questioning your use…i believe u WILL use it for investment…But
when u lodge a tax return, ur accountant is going to ask to prove it’s for investment..as ATO requires paper trail proof; i was able to claim my 4×4 drie under investment but my situation is slightly diff in that i bought it under a company name and the company was a property investing company so that was my paper trail….
Might want to give ur accountant a call to see what he thinks and how you can create the proof.
Regards
Michael
Mick C | Shape Home Loans
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Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
July 5, 2011 - 8:03 am
You would probably be able to claim a deduction based on the rate for the engine size x KM travelled for IP related matters
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Michael 888
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@michael-888
Join Date: 2005
Post Count: 260
July 5, 2011 - 8:51 am
Terryw wrote:
You would probably be able to claim a deduction based on the rate for the engine size x KM travelled for IP related matters
Good point Terry.
In the event that one has numerous holdings and investment related km go over the 5000km limit, do
investment related km (inspections, repairs, and other income related activities related to that portfolio)
qualify to be attributed to a vehicle log book type documentation?………maybe 26 weeks(6 months) to be more reflective
of investment related activities rather than the traditional 12 week (3 month) business log book. THat is the situation I am
in.
Also does IP related travel in a motor vehicle for SMSF holdings get attributed to the trustee (or director of trustee
company and also member) or to the super fund itself? The SMSF doesn't own motor vehicles, so km can't accumulate in
that entity. I am wondering if such km accumulated can also be attributed to me and go toward a log book type scenario.
Depending on value of vehicle, a log book is more tax friendly (to me as a tax payer than a pure per km rate.
Any insights would be appreciated
crj
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@crj
Join Date: 2004
Post Count: 618
July 5, 2011 - 9:23 pm
As you act gratuitously as the trustee ie trustees of SMSFs don't charge for their time etc what is the connection between you driving km re SMSF properties AND Your taxable income
the best is you might be able to be reimbursed by the SMSF (subject to the rules), the SMSF would claim a deduction at 15c/$ and you would show the reimbursement as income and claim a deduction
Mick C
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@shape
Join Date: 2010
Post Count: 1,099
July 6, 2011 - 1:31 am
Terryw wrote:
You would probably be able to claim a deduction based on the rate for the engine size x KM travelled for IP related matters
Terry- Good point – can def claim petrol and travel expense; but you rekon they can claim for the purchase it self + depreciation etc ?
Regards
Michael
Mick C | Shape Home Loans
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Mr5o1
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@mr5o1
Join Date: 2010
Post Count: 107
July 6, 2011 - 3:09 am
The usual rules will apply.
As regards the motor vehicle the 4 methods of calculating your deduction are available – though your probably only eligible for 2 of them, and the rate per km will probably give you the best deduction. You could use the log book method, but it’s unlikely you would get a reasonable percentage.
As regards the trailer, treat it the same as your other tools and equipment, estimate a percentage to which it’s related to the rental, and apply that to annual depreciation. (and be prepared to justify the percentage).