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Offline Joel


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Offline 360c

  • 300kph+ club
  • Drug Dealer

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  • Drives: Purple People Eater



Offline Joel


  • Joined: Oct 2009

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I spot a dodgy tax deduction scheme :p
Yes I sniff a certain panel shop has bought the car.



Offline andecorp

  • Biggest daddy in the park 300kph+ club
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  • Joined: Jan 2007

  • Drives: too many cars for one ass
Or again someone that can only afford to buy a car by whoring it out  :doh:
You make something idiotproof, they'll make a better idiot.



Offline 360c

  • 300kph+ club
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  • Joined: Apr 2006

  • Drives: Purple People Eater
Or again someone that can only afford to buy a car by whoring it out  :doh:

It won't work. The ATO won't let you claim deductions on a "business" that isn't run with the full intent of making a taxable profit within a reasonable period.



Online looney


  • Joined: Mar 2007

  • Drives: VW Beetle
It won't work. The ATO won't let you claim deductions on a "business" that isn't run with the full intent of making a taxable profit within a reasonable period.

So what happens  then?  They basically tell you if you have not made a profit you can take claim it as a business?  What if he genuinely wants to run a business but nobody is willing to pay the $50k per day he wants for the car? (I just made that number up, don't quote that as the figure)

What if he already has a rental car Company and uses this to offset some money?  One of the guys in Perth apparently (this is third hand info here)  had his murcielago as a rental car for some stupid sum like $20k per day, but he actually also had a regular rental car company as his primary business.



Offline MikeG

  • The World's Finest Brands

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  • Location: Australia
  • Name: Mike Glew
I don't know why you'd bother.  My business leases a car (not an exotic) and claims it fine.

Note, this guy would need to claim FBT based on personal use, so if he never rents it, he's up for 20% pa.
Mike
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Offline mondi

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So what happens  then?  They basically tell you if you have not made a profit you can take claim it as a business?  What if he genuinely wants to run a business but nobody is willing to pay the $50k per day he wants for the car? (I just made that number up, don't quote that as the figure)

What if he already has a rental car Company and uses this to offset some money?  One of the guys in Perth apparently (this is third hand info here)  had his murcielago as a rental car for some stupid sum like $20k per day, but he actually also had a regular rental car company as his primary business.

From past experience with small business, they allow you the first 2 years to run at a loss, pretty much for setting up and buying all the equipment you may need, etc, etc, etc..........but after that they expect to see profit or at worst breaking even.

I know a few guys who pushed the envelop a little far and got a visit very quickly...........



Offline 360c

  • 300kph+ club
  • Drug Dealer

  • Joined: Apr 2006

  • Drives: Purple People Eater
From past experience with small business, they allow you the first 2 years to run at a loss, pretty much for setting up and buying all the equipment you may need, etc, etc, etc..........but after that they expect to see profit or at worst breaking even.

I know a few guys who pushed the envelop a little far and got a visit very quickly...........

Yup, ask me how I know :p



Offline 360c

  • 300kph+ club
  • Drug Dealer

  • Joined: Apr 2006

  • Drives: Purple People Eater
So what happens  then?  They basically tell you if you have not made a profit you can take claim it as a business?  What if he genuinely wants to run a business but nobody is willing to pay the $50k per day he wants for the car? (I just made that number up, don't quote that as the figure)

What if he already has a rental car Company and uses this to offset some money?  One of the guys in Perth apparently (this is third hand info here)  had his murcielago as a rental car for some stupid sum like $20k per day, but he actually also had a regular rental car company as his primary business.

They just deem it not to be a genuine business. After all nobody runs a business with the intent of making a permanent loss.

In the case of the Perth guy that would fly because he has a genuine hire car business that presumably turns a profit. He adds an exotic to the fleet which is genuinely advertised for hire, that is arguably reasonable. If it was never rented and did nothing but generate tax losses, that would be a problem that gets a knock on the door. If it gets used for personal use that would attract FBT. I suspect there is more to the story.

If it were me I would make sure it gets "rented" a couple of times a year.



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