I want to take a car loan of about AUD40,000 from the bank.I just wanted to know will there be any reduction in my tax deductions if I take a loan.
Can the taxable income be paid as a loan instalments.I dunno anything about the tax attached with loan.hopel me plzzzz.....
thank u so much
2006-10-17 20:39:11 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Australia
If it is work related... yes... but only the interest part.... otherwise no
2006-10-19 16:04:25 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can only claim work related expenses as a deduction in Australia.
If you are buying a car, that isn't considered an expense, it's gaining an asset. You're taking out a liability (the loan) to pay for that asset.
If you were to Lease the car (for business purposes only) you could claim the lease as an expense, or a portion of it (if you also used it for personal use - you would need a log book, and there's fringe benefit implications there)
2006-10-18 03:52:36 · answer #2 · answered by Joeyjoeyjoe 1 · 0⤊ 0⤋
There shouldn't be, there isn't any tax deduction that would be affected by that.
There is no tax attached to a loan, only interest. Borrowing money doesn't make up part of your taxable income.
2006-10-20 20:09:29 · answer #3 · answered by chicgirl639 3 · 0⤊ 0⤋
depending no wether the loan is related to ur job or business purpose
from melbourne
fazi_all@yahoo.com
2006-10-18 03:47:13 · answer #4 · answered by fazi h 1 · 0⤊ 0⤋
If you could that you have to - have to have a car to run your business or so....., and you can not use public transport for that.
2006-10-18 07:08:48 · answer #5 · answered by kamboj singh 1 · 0⤊ 0⤋