Buying A NEW Cobra. Rough Guide to $

[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.

[spookypt]

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.

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

[Wazza]

Hey Spook,

I'm FAIRLY sure that the sale of a private vehicle does not attract Cap Gains tax.

Had a bit of a google, and found the following on one of the tax websites,

The exemptions from capital gains tax Australia are mentioned specifically. The exemption law is applied to all kinds of assets from tangible to intangible and from owned outright to partial interest assets. Here is a list of some of the assets that enjoy capital gains tax exemption in Australia:
Any asset that is purchased before 20th September 1985 till its original owner is surviving.
The personal use assets purchased for up to $10,000 including electrical equipments, furniture and boat.
The main residence of the taxpayer whose adjacent 2 hectares are in domestic use.
Cars and small motor vehicles.
Compensation received for the personal or occupational injury.
Sold life insurance policies.
Shares bought in the pooled development funds.
Notes and bonds sold at discount.
Payments received from government-designed schemes like the industry restructuring schemes.
Collectables purchased for up to $500
Gambling wins and losses.
Trading of stocks.
but I'll check with my accountant tomorrow.

I could be wrong....first time for everything

Cheers,
Warren.

[schipps]

Originally Posted by Wazza

Hey Spook,

I'm FAIRLY sure that the sale of a private vehicle does not attract Cap Gains tax.

Had a bit of a google, and found the following on one of the tax websites,

The exemptions from capital gains tax Australia are mentioned specifically. The exemption law is applied to all kinds of assets from tangible to intangible and from owned outright to partial interest assets. Here is a list of some of the assets that enjoy capital gains tax exemption in Australia:
Any asset that is purchased before 20th September 1985 till its original owner is surviving.
The personal use assets purchased for up to $10,000 including electrical equipments, furniture and boat.
The main residence of the taxpayer whose adjacent 2 hectares are in domestic use.
Cars and small motor vehicles.
Compensation received for the personal or occupational injury.
Sold life insurance policies.
Shares bought in the pooled development funds.
Notes and bonds sold at discount.
Payments received from government-designed schemes like the industry restructuring schemes.
Collectables purchased for up to $500
Gambling wins and losses.
Trading of stocks.
but I'll check with my accountant tomorrow.

I could be wrong....first time for everything

Cheers,
Warren.

El Presidente,

I copied this straight off the ATO website.


"Guide to capital gains tax 2008-09


Exemptions and rollovers
There are exemptions and rollovers that may allow you to reduce, defer or disregard your capital gain or capital loss.
.............
Exemptions

...........

Capital gains and capital losses that are also disregarded include those you make from:

a car (that is, a motor vehicle designed to carry a load of less than one tonne and fewer than nine passengers) or motorcycle or similar vehicle ..."

SO, unless your Cobra has more than 9 seats...you should be ok.

Also, your last point about trading of stocks, it DOES attract Capital Gains Tax.
regards


Mick