Capital Purchases and Finance in AccountRight
HOW TO RECORD CAPITAL PURCHASES AND FINANCE IN ACCOUNTRIGHT There are many finance options available to purchase capital equipment. Commonly used in Australia are: chattel mortgages: ownersh...
Forum Discussion
Ron,
Very detailed article.
A few observations -
The Card for the Finance Coy should include the monthly amount.
I would set up 2 Cards ABC Loan 47 by $2137.57
ABC Loan final Oct 19 $1987.46
The Luxury Car Threshold (ie when Luxury Car Tax is charged) and the Luxury Car Limit for depreciation and Input Tax Credits are 2 different figures.
My understanding is that the Luxury Car Limit for depreciation and Input Tax Credits for FY16 is $57,466.
The maximum amount of Input Tax Credits that can be claimed is $57,466 / 11 = $5224.
If there is personal use, I reduce the $5224 by the personal use %.
If a car costs more than $57,466, I create a separate ledger called MV (over $57466).
This is important in working out a potential profit on sale given that depreciation at 15/30% means a car is often written down faster than its resale price.
Accounting for cars is indeed complex - as you say all business owners should consult their accountant for advice. Cloud Accounting should assist in getting regular advice from an accountant.
Duncan Smith
Business Advice + Tax
