Private Sales And Gst?

[coach3062]

  Jman said:

How about this scenario...

I was to buy the 2nd hand ute...

claim the gst

claim exp's of it..

Few years down the track I wish to trade up.

I go to a dealership and purchase a new ute...

Question is..

Does the sale of my old existing vehicle get put down as additional income/gst that needs to be paid up, OR... Does it come off the liability of the NEW vehicle?

Cheers,

Jarrod

←

It is really two seperate transactions but on the same BAS. So technically it happens at the same time.

Remember that it is entirely seperate to the transactions with the dealership.

Also, I question the value of a lease, you may be better off with commercial hire purchase, it can be easier to terminate if you need to get out earlier than expected.

Get good advice, not free generalisations like mine, but a good accountant's advice!

[XR Impact]

My situation was I had a car for private use.

I claimed petrol and repairs on my business on BAS each quater.

When I sold it to a family member for cash because trade value was sh*t.

I bought a second hand car from a dealer, claimed the GST on my next BAS. The tax office rang me about 4 months later wanting to know where the GST on my old car is. I told them I gave it to a family member no GST was charged. They said you have to pay GST no matter what. Once you make any claims on a car you have to pay GST when you sell it. If you trade a car at a dealer you still have to pay the GST to the tax office on your next BAS. If you don't you will get caught you will have to pay the tax amount + interest & risk a fine.

[Jman]

Many thanks guys.

greatly appreciate the info..

Jarrod.

[plj 59]

tax office don,t miss out, you buy a porsche or whatever for about 250k claim gst on 58k but when you sell it for around 200k you have to pay gst on the 200k back to them. tell me how that works

[tab]

Huh?

[coach3062]

  plj 59 said:

tax office don,t miss out, you buy a porsche or whatever for about 250k claim gst on 58k but when you sell it for around 200k you have to pay gst on the 200k back to them. tell me how that works

←

Luxury car tax threshold!

Get yourself a better accountant.

[plj 59]

  coach3062 said:

  plj 59 said:

tax office don,t miss out, you buy a porsche or whatever for about 250k claim gst on 58k but when you sell it for around 200k you have to pay gst on the 200k back to them. tell me how that works

←

Luxury car tax threshold!

Get yourself a better accountant.

←

what do you think of this,buy car in private name use in sprints claim 30 to 40k in sponsorship from your own company maybe tax free as you are not a professional,money in the pocket. just an idea

[Turbo6man]

  coach3062 said:

A business buying a motor vehicle from a private seller can claim 1/11th as a gst input. It will not be itemised in the receipt as such, but you must keep receipts.

Your depreciation starts with the new lower figure.

Don't forget that when you sell the vehicle you must allow for the gst in the selling price.

←

Sorry to disagree but this is not the case.

Unless GST is itemised and paid by the seller to the govt. the purchaser cannot claim GST from the transaction.

The simple way of putting this is that under the law you cannot claim back something which you haven't paid. As there is no GST in the price of a car sold privately you cannot claim GST.

You can of course claim depreciation and running costs according to your log book verification of the proportion of business use to which you are entitled.