this sort of follows on from the other threads about cash flow positive vehicles and write off's etc.
Talking to a mate of mine the other day...he is just about to register an ABN and start a new company so he can do some consulting work in IT.
he was raving on that the first thing he needs to do is buy a new car - and he wants to buy a 5 series BMW (long held dream). Forgetting all the stupid statements about why that car and expense etc. just for a moment here is the scenario and question:
If I remember it right, he was saying that he can walk into the dealer "purchase" with no money down on a chattel mortgage arrangement and drive home.
on his first BAS statement he gets the 10% GST back - about 12000?? which he will use to fund the CM payments for 6-7 months...by then he figures he will be earning enough to continue the payments himself etc until tax time when he will also get the 50%?? tax rebate upto luxury car limit.
Is all this correct????? sounds too good to be true...I have never submitted a BAS but aren't they quarterly or something - so he would still have to carry the payments for the first few weeks until the 10% came back???
what am i missing here - sounds too simple?!?!?!?!?!
Talking to a mate of mine the other day...he is just about to register an ABN and start a new company so he can do some consulting work in IT.
he was raving on that the first thing he needs to do is buy a new car - and he wants to buy a 5 series BMW (long held dream). Forgetting all the stupid statements about why that car and expense etc. just for a moment here is the scenario and question:
If I remember it right, he was saying that he can walk into the dealer "purchase" with no money down on a chattel mortgage arrangement and drive home.
on his first BAS statement he gets the 10% GST back - about 12000?? which he will use to fund the CM payments for 6-7 months...by then he figures he will be earning enough to continue the payments himself etc until tax time when he will also get the 50%?? tax rebate upto luxury car limit.
Is all this correct????? sounds too good to be true...I have never submitted a BAS but aren't they quarterly or something - so he would still have to carry the payments for the first few weeks until the 10% came back???
what am i missing here - sounds too simple?!?!?!?!?!
