Tax Deductible Notebook/Laptop

Viewing 6 posts - 1 through 6 (of 6 total)

bwendan
Participant
@bwendan
Join Date: 2004
Post Count: 30
February 7, 2005 - 12:06 pm
Ive decided to get a new computer, but my dad (im 16) says that its better to get a laptop because its tax deductible. He works as a chemical engineer, earning abt $85k a year. How do these tax deductions work? What exactly can he claim?
byronent_2
Participant
@byronent_2
Join Date: 2004
Post Count: 337
February 7, 2005 - 12:10 pm
YOu can pretty much claim a notebook each year from my understanding.
Either by salary sacrafice or a tax deduction. He is correct as it is more of a saving then if you bought a standard PC.
Byronent
Adelaide SA
byronent_2
Participant
@byronent_2
Join Date: 2004
Post Count: 337
February 7, 2005 - 12:11 pm
You could even get real cheeky and agree to a notebook if he pays you what the net tax deduction is. Kind of an incentive for him to bribe you to accept.
[biggrin]
[biggrin]
Byronent
Adelaide SA
GreatPig
Member
@greatpig
Join Date: 2004
Post Count: 284
February 7, 2005 - 1:35 pm
By my understanding, if the company buys the laptop for him, or reimburses him for it, then it’s from pre-tax dollars as laptops are exempt from FBT, even if used for private use. So as a salary sacrifice he would only be sacrificing the cost of the laptop itself from his gross salary, not the cost + tax (income tax I mean, not GST).
If he’s unsure of the details, he should speak to his accountant or company accountant (sorry, financial controller []).
GP
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
February 7, 2005 - 3:14 pm
You’re getting the computer, but dad is claiming it? You’re only 16 – and learning fast!
Yes I have heard the same thing. You can get a double deduction. The company buys it for the employee and claims it, the employee can also claim it – depreciating it over 5 years or so. This results in getting it for nearly nothing!!! It only works for certain things which are GST exempt such as laptops and mobiles.
I think there is something about this in “trust magic”.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email me
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
GreatPig
Member
@greatpig
Join Date: 2004
Post Count: 284
February 7, 2005 - 11:33 pm
Originally posted by terryw:
It only works for certain things which are GST exempt
FBT exempt.
GP