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Jannaranna's avatar
Jannaranna
Contributing Partner
5 years ago

Entering purchase of car less an input tax credit in depreciation schedule (general pool) subject to cost limit and with a private proportion

How do I enter in MYOB AO Tax the purchase of a car in the depreciation schedule given the following information.

The car costs $70,000 on 1st January 2019 and is subject to the car limit of $57,581. My client is a small business with a general pool. The vehicle is used 70% for business and is entitled to claim an input tax credit.

My understanding is that my client would be entitled to claim an input tax credit of $5234.63 (1/11th of $57581) less 30% private use.

Should I show the cost of the car as $57581 less $5234 i.e., $52347 and the private proprtion 30%?

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  • Helen-Z's avatar
    Helen-Z
    MYOB Staff
    5 years ago

    Hello Jannaranna 

     

    Thank you for your question - hopefully you find the answer helpful!

     

    To enter the new car purchase within the Depreciation worksheet - open the return, by clicking on menu option Preparation > Schedule and then selecting option Depreciation Worksheet.

     

    Once that has opened, click on New, and you will see the Depreciation worksheet popup:

     

    Within this popup, enter the relevant details, making sure to select Motor Vehicle for the type (this will ensure the car limit is taken into account), and 30% for private use, both of which are shown at the top right of the image. The other fields will be as for a standard asset, where you would enter the date purchased, the purchase cost and either the effective life of annual rate.

     

    This will calculate the required figure, taking into account the car limit, as well as the private use percentage.