Motor vehicle expenses @

[parra1]

Guys,

Can anyone help me here. I lease a vehicle as part of my salary sacrafice arrangement with my employee. I have a 2nd job as well which I have used this vehicle over 5000Kms. I purchased the vehicle in 2006 NEW and wish to claim the 12% method which is calculated according to the ATO site as :

Method 2 – 12 % of original value method
If you bought the car, you can claim 12 % of the cost of the car. If you leased the car, you can claim 12 % of its market value at the time that you first leased it.

Your car must have (or would have if you had it for the whole financial year) travelled more than 5,000 business kilometres during the financial year.
The maximum allowable deduction is 12 % of the luxury car limit in the year in which you first used or leased the car.
You do not need written evidence if you use this method, but you may need to be able to show how you worked out your business kilometres


The market value when purchased was $48695. However the FBT value according to the Salary sacrafice lease company is only $40,635 for the life of the lease.

QUESTION :


Do I claim 12% of the MARKET VALUE being $ 48695 or what is on the FBT being $ 40,635

Any clues, you ring the ATO and you can very, very little assistance and communication with their staff is a HUGE problem.

Thanks guys.

 

[marg4000]

Better check with your accountant - as you salary sacrifice for the vehicle you are already paying everything relating to the car with pre-tax dollars.

Friends were advised by their accountant no further deductions were allowed as full deductions had been obtained by salary sacrifice.

Marg

 

[parra1]

Hi Marg



ATO keep telling me that it is OK. I am just as confused now. Seeing my accountant next week so hopefully get a correct answer then.

Thanks for your reply.

 

[jrc]

Marg is correct. You cannot claim a personal tax deduction on something you have got as part of a fringe benefit because the fringe benefit is not included in your personal assessable income

 

[Rob G.]

s.51AF ITAA36: No deductions for FBT cars.

Depending on the method employer #1 uses, you should provide receipts and declarations about income related use for any expenses you have actually paid.

Cheers,

Rob