Claiming expenses on Tax

b2tf · 28-12-2005, 08:29 PM

Bit of a query here,

I am considering purchasing or leasing a new laptop, primarily for work use but also for myself. It will be in my name leased for most likely 2 or 3 years.

Im wondering, whats the best way (if its even possible) to claim some of the costs of it back on my personal tax return? And what can I actually claim for?

vztrt · 28-12-2005, 08:32 PM

If you rent/lease a laptop under a business than your deductions are 100% deductible. Also you can buy the laptop after your lease or upgrade.

max^power · 28-12-2005, 08:39 PM

AFAIK you can only claim depreciation for personal returns. www.ato.gov.au is a great site to check though as im no CPA

parawolf · 28-12-2005, 08:53 PM

Investigate a salary sacrifice with your tax accountant. You can do one portable device every twelve months I believe (FBT year).

All laptop and 'portable' accessories requried can be combined into a 6month or 12 month salary sacrifice. Talk to your tax accountant for more information if this is appropriate for you.

MO · 28-12-2005, 10:07 PM

Some good advice there!

b2tf · 28-12-2005, 10:17 PM

No its not good advice when:

a) I dont have an accountant
b) I have absolutely no idea about how to do this sort of stuff

:

MO · 28-12-2005, 10:23 PM

Quote:

Originally Posted by back2thefutura

No its not good advice when:

a) I dont have an accountant
b) I have absolutely no idea about how to do this sort of stuff

:

Then get out there and get yourself an accountant their fees are tax deductible...plus they can help you minimise your tax bill!!!!!!

Smoke Pursuit · 28-12-2005, 10:30 PM

Yeh get an accountant. Usually you can only claim a depreciated amount on your tax less your % of personal use... Flexirent is however a joke as you pay twice as much as the computer would cost you if you bought it outright...

Filthy GT-P · 28-12-2005, 10:50 PM

Quote:

Originally Posted by parawolf

Investigate a salary sacrifice with your tax accountant. You can do one portable device every twelve months I believe (FBT year).

All laptop and 'portable' accessories requried can be combined into a 6month or 12 month salary sacrifice. Talk to your tax accountant for more information if this is appropriate for you.

This would only be of an advantage if your employer would help you out to make this happen. There is an anomoly between the FBT and taxation act. An employer may provide an employee with a notebook and claim an outright deduction for it as an "Exempt Fringe Benefit". This helps some people as it is not reported as a Reportable Fringe Benefit on your PAYG Payment summary. The Depreciation rates for notebooks (effective life 3 years) are higher than those for desktop computers(effective life 4 years), but both fall well short of a 100% deduction.

The best advice is to get a decent tax accountant who will make the time to get to understand you, what you do, what you would like to achieve and will then help you to achieve these goals. Don't get hung up on what it will cost, your real issue is what would the cost be of getting the whole thing wrong. It is usually much cheaper and easier to get good advice before hand than to try and correct a less than ideal outcome.

And for the record this is not advice as I am a CPA in public practice. My advice is find a decent accountant and get the correct advice with the full facts and not what someone else thinks might be right.

Regards

Steven

Bluefreak · 29-12-2005, 07:56 AM

I'm salary sacrificing a laptop... Had my accountant look into it and he was satisfied the system would work for me. You need to speak to an accountant(as previously mentioned) and see exactly where you stand... Also a bit of food for thought... Guy's I know have had Full home entertainment systems(plasma+DVD+surround sound) systems written down as high end computing goods... They salary sacrifice these and can upgrade as technology developes.