Correctly accounting for the private use of business assets
Using business assets for private purposes is coming under increasing scrutiny from the ATO. How can you stay on the right side of the Tax office?
There has been an increased focus by the ATO on the use of assets held by business entities for private purposes. This includes assets that are genuinely used in the course of the entity's business operations.
The ATO has released some guidance to assist taxpayers incorrectly accounting for their private use of these assets, which can include:
- Ensuring deductions are only claimed for business use
- Correctly apportioning deductions,
- Making sure FBT or Division 7A issues are considered and
- Maintaining appropriate records to reduce the likelihood of mistakes.
If you're unsure about what constitutes 'private use' it is worth discussing with your accountant to avoid a potential tax sting.
Contact us on 02 9957 4033 for more information.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.