Tax codes

[Moniquecalleia]

Hi, I am recording a purchase of a new vehicle.

My journal enrty look like this,

suspense $93,000 DR / TAX CODE NT

suspense $3,000 CR cash deposit value / TAX CODE NT

Land Rover chattel mortgage account $73,000 money borrowed / TAX CODE NT

Motor vehicle at cost $17,000 trade in on personal vehicle  / Which tax code do l use? l'm thinking NT cause l personally own the car l was trading in.

[LRBooks61]

I think you should get your accountant to assist with this

However, if the car is private and not registered to the company and hasn't had any expenses against it then it is drawings/Capital Contribution so NT would be correct at this stage

Advice from your accountant is advised as if the company/business now owns this car there is a GST component that can be claimed. The value of the vehicle presents other issues like luxury car tax etc

Lisa