Quote:
Originally Posted by Wazza
Not necessarilly PHil... One thing we ALL must be wary of IF we sell is capital gains on vehicle sales as it equates to income. If you can prove it has cost you more than your selling it for then no tax applies. But if it has only cost you 60 and you sell it for 100 then wamo your up for some hefty tax bickies.... And yes, THEY KNOW!
Sppok,
As far as I know the capital gains will only be a worry if you've bought the car in a business/company name, and have it on the balance sheet as a company car.
Otherwise, a sale of a private vehicle does not attract Cap gains.
My bumblebee was a "company" car....the new one is not...for that reason.
Check it out with your accountant though to make sure.
Cheers,
Warren.
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Hey Wazza, my wording was incorrect. I hate accounting! What I am trying to say is if you achieve a capital gain on your vehicle (privately owned)..whether its your main car or your hobby car or whatever...and I bought it for 30k sell spent no money on it and sold it for 60k you will pay tax on the 30k difference as that 30K it is viewed by the ATO as untaxed income!
What owners must remember is that when they 1st register their cars and to skimp on the first Stamp Duty on rego they list their car at $65000 and then in 2 years sell for $80000 the 15K difference is taxable as income. (Unless receipts can be shown that more money has been spent in the interim.)
I'l stand correct but Ernst and Young and my company accountant surely cant both be wrong?? I'll happily stand corrected if proven otherwise though.
Spookypt