Best time to buy a GTI?

[Maverick]

In regards to the 30-50% bonus tax deduction, what do you need to be eligible? my sister in law owns her own business and turns over under 2 million dollars so am I able to get her to buy the car through her business and receive this offer?

No, the car needs to be registered in your sister in laws business name, financed through there and used for income generating purposes. And on top of that any personal use has to be accounted for.

Google it and you will find all the information.

[multi97]

Would you know what a stock GTI 5door manual would go for? I'm hoping less than $36k d/a

Try your luck, seems like Melbourne has the most left over stock.

[tdi guy]

No, the car needs to be registered in your sister in laws business name, financed through there and used for income generating purposes. And on top of that any personal use has to be accounted for.

Google it and you will find all the information.

Obviously, you and she should really get some specific professional tax advice first. However, one of the requirements to claim the investment allowance tax deduction is that she is entitled to claim depreciation on the car for tax purposes in relation to producing assessable income in her business.

This means she needs to 'hold' the car (either purchase it or, in certain circumstances, a hire purchase or luxury car lease will suffice) and use it in her business for income producing purposes. If she lets you use the car, then that will reduce the allowable deduction claim (because, relevantly, the deduction is reduced to the extent to which the usage is 'private' in nature). Employees who claim deductions for 'business usage' of their cars (e.g., travelling salesmen) can't claim the deduction.

[GTI32]

Obviously, you and she should really get some specific professional tax advice first. However, one of the requirements to claim the investment allowance tax deduction is that she is entitled to claim depreciation on the car for tax purposes in relation to producing assessable income in her business.

This means she needs to 'hold' the car (either purchase it or, in certain circumstances, a hire purchase or luxury car lease will suffice) and use it in her business for income producing purposes. If she lets you use the car, then that will reduce the allowable deduction claim (because, relevantly, the deduction is reduced to the extent to which the usage is 'private' in nature). Employees who claim deductions for 'business usage' of their cars (e.g., travelling salesmen) can't claim the deduction.

These comments are correct for depreciation, and refer to the apportionment of the depreciation for business purposes.
There are different rules in place for the one off investment allowance. This is not apportioned. If the asset is purchased specifically for business purposes (at the date it was purchased), then the allowance is applied in full.

[multi97]

These comments are correct for depreciation, and refer to the apportionment of the depreciation for business purposes.
There are different rules in place for the one off investment allowance. This is not apportioned. If the asset is purchased specifically for business purposes (at the date it was purchased), then the allowance is applied in full.

Actually GTI32 is absolutely correct here. As long as the depreciating asset was bought for business purposes originally, the investment allowance (which is a straight off 30%-50% deduction) can be used. It doesn't matter if there is a private component to it. The private component apportioning is only for depreciation and FBT purposes.

Just think of it as two separate things. 1. Investment allowance = a further free 30- 50% purchase price of the asset to become an deduction for the business. (without having to declare what is business or personal)
2. Depreciation Exp = As per normal requirements.

But TSIguy is also correct in saying "Get some professional tax advice" if you do plan to go down this path.

[tdi guy]

Actually GTI32 is absolutely correct here. As long as the depreciating asset was bought for business purposes originally, the investment allowance (which is a straight off 30%-50% deduction) can be used. It doesn't matter if there is a private component to it. The private component apportioning is only for depreciation and FBT purposes.

I stand corrected... all the more reason to get specific tax advice!

[franjae]

And if the vehicle had to be purchased in a company or trust, and FBT applies, your investment allowance, will be lost fairly quickly through FBT cost. Keep it simple, buy in your own name and forget the investment allowance that you are not entitled to in the first place.

[tdi guy]

And if the vehicle had to be purchased in a company or trust, and FBT applies, your investment allowance, will be lost fairly quickly through FBT cost. Keep it simple, buy in your own name and forget the investment allowance that you are not entitled to in the first place.

Actually (and at the risk of being proven wrong), it is generally always cheaper to get a car through FBT than privately (even at the highest FBT statutory valuation rate, when you factor in the loss of value of the car in either case and if the alternate use of funds is say a mortgage offset account), so the value of the investment allowance is probably maintained. I haven't crunched the numbers for a car that is over the luxury car limit, so the answer may be different for say a fully optioned R32...

[bwen]

Thanks for all the replies, I was just wondering about the tax benefits but I will be paying for the car in cash anyway so I might just not worry about all that trouble.

I'm going today to get a few prices in person and if it's the right price I might come back today with a new car!

[bwen]

Picked up a Brand new 3dr Silver Pirelli with parking sensors for $34k drive away! Stoked! I'll take some pictures tonight

[VW Central]

Picked up a Brand new 3dr Silver Pirelli with parking sensors for $34k drive away! Stoked! I'll take some pictures tonight

No way! You have to be joking! Brand New Pirelli for $34,000. I find that VERY hard to believe.

[Maverick]

Picked up a Brand new 3dr Silver Pirelli with parking sensors for $34k drive away! Stoked! I'll take some pictures tonight

I really doubt you picked it up for $34K drive away! $45K maybe but not $34K.

[VW Central]

I really doubt you picked it up for $34K drive away! $45K maybe but not $34K.

Probably a write off and they have fixed it up then wiped the odometer with VAGCOM

[Maverick]

Probably a write off and they have fixed it up then wiped the odometer with VAGCOM

It is a 3 door as well, probably about all they're worth

He'll pick the car up and it'll be a GT TDI with Pirelli tyres

[VW Central]

It is a 3 door as well, probably about all they're worth

He'll pick the car up and it'll be a GT TDI with Pirelli tyres

HAHA!

I never knew my other two doors were worth $12,000. I only really need one more door for the passenger side. Maybe I will put it up for sale in one of the threads $6,000ono per door.