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20k End of tax year deduction for business

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Jimmy111 | 25 May 2018, 11:26 AM Agree 0
Hey guys,

I've heard so many different opinions on this, I have also read a lot of articles about this aswell.

I am struggling to come to a concrete answer.

If anyone can shed any light on this, would be great.

Regarding the 20K instant asset write-off for small business for this financial year.

I understand if I am to purchase anything business related under a combined total of 20K or a single total of 20K. Eg if I was to buy a car and place it under the business name (note this is an ABN business not ACN LLC etc)
For example a $19,900 purchased car.

I was under the understanding that if that car was purchased at a dealer, the GST is immediately deducted of your bas as normal. Then the total remaining amount of the purchase is deducted off your EOFY tax bill or any outstanding tax bills for that said business.
If it is privately purchased vehicle the GST component is not claimable as it doesn't exist, however 100% of the purchase price is again immediately deducted of that financial years debts ($19,900) Eg tax debt for that financial year for example is 25K - $19900 asset writeoff = $5100 tax debt is now owed. Am I wrong?

If im wrong how would the deduction effect my end of year tax bill etc?‚Äč

much appreciated.
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