Home topics news Image Credit: Tim Mossholder Hot Tips News Hot Tips Got questions about buying a new or used vehicle for your business? We’ve answered some common FAQs Yajush Gupta June 20, 2022 Note: This guide is not intended to be legal/tax advice. All information is sourced from government/official sources. You are advised to seek your own legal/tax counsel/advisor. This information is provided solely for educational purposes. Whether the owner is a company or an employee, a car purchased for business use provides tax benefits to the owner. However, before you buy that car, think about the advantages and disadvantages. There are tax implications as well as other concerns to consider with this decision. We’ve attempted to answer some of the most often asked questions to help you in making an informed decision when purchasing or leasing a new or used car for your business needs. Should I buy my car under my name or my business? When you buy a car under a business name, you can deduct depreciation, minimising your earnings tax liability. Furthermore, the purchase will be a fixed asset for the company that was made with earnings. According to the ATO, as a business owner, you can claim a tax deduction for expenses related to motor vehicles — cars and certain other vehicles – used in the operation of your business. Read HERE for more. If you drive a car for both business and personal purposes, you must be able to appropriately identify and justify