vehicle purchased

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vehicle purchased

Hi, I recently purchased a vehicle with cash under my company. I paid $20k from the company account and $50k from a personal account. I am claiming 70% of expenses on this vehicle for business use. How can I account for the $50k used from my personal account in MYOB? 

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Re: vehicle purchased

Hi @Den7

 

As you have a company, you should have a Loan account with the company for monies you may have lent it in the past. If you don't, create a Loan Account as a Credit Card Type under the 2's. If you already have a Loan Account, make it a Bank or Credit Card type.

 

The $50K is a Loan from you to your Company but it was paid directly to the sellor. So record  a Spend Money transaction from your loan account and record it to Motor Vehicles at Cost. The other $20k would be recorded as a Spend Money from your Company bank account, also to Motor Vehicles at Cost. If you don't have a Motor Vehicles at Cost account, you can create one as a Fixed Asset Type "1" account.

 

You will need to reflect the GST in the entries. There are also tax Thresholds that apply to certain motor vehicles,  so you should discuss the numbers and private use with your Tax Agent.

 


Regards
Ian Chait CA
Certified Consultant Melbourne
P/M 0417 479 585
Email ian@myfc.com.au

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Re: vehicle purchased

Ian has given you a simplistic outline of what is involved with the wise advice to refer the transaction to your accountant.  This is all this forum should be expected to provide,  Tax advice is not something that should be addressed by anyone other than your accountant who is familiar with your business circumstances 

You have a whole range of issues involved 

Luxury car tax threshold as vehicle is over limit. 

Private use apportion can be annual or at occurrence (election of option needs to be documented)

What items were subject to gst stamp duty registration exempt from reporting etc

Balance sheet value of vehicle will need to be adjusted to reflect private use

Please mark as a solution if you find this has assisted you with your enquiry
Paul Bihet MYOB Certified Consultant
(Bookkeeper Support & Training)
MYOB Sales, Installation & Support
B.A.S. Service Provider
Phone (08) 7131 1116
Mobile 0413 313 403
Fax (08) 7200 7715
Email: paul@mysupportman.com.au
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Re: vehicle purchased

@Den7 @PaulBihet @IanChait

 

Den,

 

There has been many posts on Motor Vehicles on the Forum over the years.

 

I put as much detail as possible into a ledger name eg Ford vvv999 bought Nov 2017

 

As Paul and Ian have mentioned, do contact your Tax Accountant - accounting for cars is complex..

It is always best to get the entries correct at the time of purchase.
Cloud Accounting assists but you should always review and understand entries prepared by your Tax Accountant.

 

I prefer to enter interest and depreciation on a monthly basis - you may like to ask your Tax Accountant how to prepare monthly journals (in your case I read there is no loan).

 

Let us know how you go.

 

Duncan

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
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Re: vehicle purchased

Thanks Ian, much appreciated.
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Re: vehicle purchased

Hi Paul, thanks for the information.
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Re: vehicle purchased

Hi Duncan, thank you for your input. It is much appreciated.

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