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My friend is starting his mortgage broker business. He is planning to buy a car. Should he buy the car on ABN or personal and claim deduction for business use?

4 years ago

Responses

Hi Rakesh

I would suggest your friend speaks to their accountant or a qualified bookkeeper in the first instance so that the structure of the business and any purchases are set up correctly from day 1.

Best wishes to your friend in their new career

Cheers

Paul

Hi Rakesh,

The commercial car loan rates I have access to are usually cheaper than the consumer car loans.

However we do require 1 year ABN and GST registration for the lower commercial/business interest rates.

Depends if he will do a lot of business kms. Also where he will get most benefit with deductions. Company tax rate may be different to his personal one. There's also FBT issues I expect. Really a question for his accountant to advise on.

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