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  • #998822
    Reezy
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    • Total posts: 3
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    Hi everyone,

    I have just recently joined the forum and am fairly clueless so my apologies in advance! I am in the final planning stage of starting my own seevser business. I have a few basic tax questions that someone can hopefully help me with.

    I need to purchase a van which will be used mostly for business use (about 80%) the cost will be roughly $30k which I will get a loan for to avoid wasting capital. Now my question is am I better off purchasing the vehicle in my name with a personal loan (which I can secure relatively easily) or trying to secure funding for the business and purchase the vehicle in the company name?

    I understand that I can get a GST credit on the GTS paid on the purchase of the vehicle if it’s in the company name however after paying FBT will I be that much better off? If I purchase the vehicle in my name am I able to charge operating costs to the company (fuel, insurance, ect) and claim a tax deduction for the company rather then paying for the operating costs personally and then claiming a tax deduction on my personal return? The reason I ask is as I understand it, it would be an expense to the company rather then paying the additional operating costs to myself as part of my wage and then being taxed on it.

    I may have this completely wrong so let me know ! Thanks for any help in advance!

    #1216198
    Dave Gillen – Former FS Concierge
    Keymaster
    • Total posts: 2,566
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    Welcome aboard [USER=111608]@Reezy[/USER]!

    Often it’s going to be a little complex because it depends on the particulars of your business, so it will be worth seeing/finding an accountant and considering it a good investment.

    But in the meantime we do have some helpful accountants on the forum who may be able to clarify the rules for you.

    Best of luck with the biz and we’re glad to have you here. :)

    Dave

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