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Tax claims for a motorcycle

Discussion in 'Politics, Laws, Government & Insurance' started by MissionMan, Jul 16, 2008.

  1. How do I claim for mileage done on a bike for business purposes? Does it work the same as a car but based on a lower engine size?

    I regularly use my bike because its easier to get to customers than in a car.

  2. You have it correct, milage is suitable for under 5000km at the small engine ratio.
  3. Thats actually interesting. My mum is an accountant, and im a soon to be accountant :LOL:
    Anyways, she bought a holden monaro CV8 cause she's a sick biatch and claims it as a business car (not classed as a luxury cause its under $57,000) and gets tax reductions every year, and now its paid off for free pretty much as she paid less tax each year. But she has her own business, if you work for someone i'd say you can claim the mileage as it should be the same, keep receipts, write down klm's.
    Even parking tickets are claimable.

    With a bike im not sure ay, would be good as i would definitely be ordering a ducati 1098s for when i start practicising next year :grin:

    Il ask my mum and let you know if she does.

  4. You claim the bike at a different question on the tax return, under different rules.

    I just did mine by E-Tax (download at www.ato.gov.au for free)
    and it asks:
    Vehicle Deductions 1:
    Did you have any work-related costs for running a car?
    ... (lots of details)

    Vehicle Deductions 2:
    Did you have any work-related costs for running a vehicle other than a car (eg motorcycle...)?
    ... (lots of details)

    Disclaimer: I am not a dude who knows anything about tax or the rules, I just am approximately repeating what the tax office says, check with them for confirmation
  5. Sorry to hear that dude! Just kidding!

    One thing you need to watch, if the car has paid itself off (according to the tax office) and you then sell it for more than its depreciated value, you need to pay capitol gains tax on the difference. You should offer to buy it off her at its depreciated value when she is ready for a change.
  6. Yes that is correct, but we ain't selling it. Capital gains a biatch.

    Now to answer the topic question, i just asked mum and she said that as long as this type of vehicle is used to transport for work purposes for whom you work then yes you can.
    It does come under a different category to a car, she said they have "Under 800cc class", its the same as well for Rotary mazda vehicles are classed differently to normal piston vehicles.
    I cant explain it that good but check it out by ringing ATO with your query.

  7. Tim

    I would check that if I were you. I think you will find that any "Fine" cannot be claimed as a legitimate business expense and therefore is not claimable for tax purposes.

  8. tru dat. I recently just sold my business, which had the bike and the car(s) as company vehicles BUT the difference was they were resgistered using business name details. Even though i was set up as a sole trader it makes little difference to claimability of the vehicles use under one golden rule, it's 100% used for business. If it's the case of you riding the bike to work and the boss asks you to take a package down town using that bike well get a log book for starters.

    Now let's say that come june 30 2009 you take a gander at said log book and discover that the annual mileage done was 10K and of that you did 5K just for your boss, well my friend there's more that the ATO offers you so get yerself to an accountant. For instance a % of rego costs, a % of tyres, a % of service costs, a % of insurance can all be taken instead of just the usual few cents per klm.

    If you don't get an allowance of sorts for running the boss's erands then think practically, if you only do his bidding a few times a year then claim the per cents route, otherwise go the other way. Above all else think of your insurance too, is the boss gunna cover you ? Or is your policy void if ya prang on a business basis ? Be careful

    parking fines no way a deduction, parking station fees, yes, backed up with a diary entry for a reason to be parked
  9. No, they aren't.

    s 26-5 of the ITAA97 [formerly s 51(4) ITAA36] provides that a taxpayer may not deduct an amount payable by way of penalty under an Australian or foreign law.

    Relevant case law:

    > Madad Pty Ltd v FC of T (84 ATC 4739); and
    > Herald & Weekly Times Ltd v FC of T ([1932] 48 CLR113, 120)
  10. Woooaaaaa. Hang on guys i dont mean parking ticket as in "FINES", i mean paying for a parking ticket to park. I have bundles of tickets that i hold onto from Uni to claim when i get my tax done.
    I have friends who have a cadetship and work for a accounting firm and they collect and keep their parking tickets that you pay for, and give them to the boss.

    Sorry i didn't make this clear.

    What's with the case law, i believe you lol.
  11. No worries, I thought you meant a parking fine. As for the case law, I just love anything accounting related - it's very exciting :LOL:
  12. Fines are NOT deductible.
  13. Yeah claiming parking is legitimate, given the new FBT rules governing employer paid parking you may need to check on what you can claim but if it is away from the office you should be OK. But given most employers would reimburce you or give you a credit card for this purpose I don't see an issue here.

    Just to clear it up don't say parking tickets say parking receipts! :roll:
  14. I lulz at you.
  15. OK everybody just walk away slowly :shock: :shock: :LOL: :LOL:
  16. No, but you could imagine if they were. right?
  17. I once claimed the purchase of an IT 465 yamaha while running a landscaping bussines
    I claimed it as a trench digger true!
    It was not disputed! :LOL:
  18. kawasaki is a heavy industry company. handy at tax time. claim everything and if they ask for it back think about it then. oh... hang on... accountants on here... edit - i have never claimed anything in my life.