Claiming a bike as a tax deductable item
- Thread starter LukeB
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pistonbroke
Eats Squid
You will need to use it at work,for work.
spyder6052
Likes Dirt
it depends, if you use your bike for actual work purposes (eg a bike courier)you would be able to claim on it as it is a tool for your job but if its just for getting to and from work then no you cant
PINT of Stella. mate!
Many, many Scotches
Claiming back tax on the working holiday visa's a tricky one. Technically all you're really allowed to claim back is any superannuation paid during the year. Having said that though, if you were canny and ticked the Resident for the purposes of taxation box on the tax form you fill out prior to any job, you should be able to wing a claim through and get a payment without too many questions being asked.
Your bike'll be a no-goer but as an example, if you have to wear overalls or a uniform of any kind (that includes logo'd polo shirts) you can claim back laundry fees which is about 150 bucks -no receipt req'd. Depending on your job you might be able to claim a shiteload of other goodies too.
BTW if anybody objects to this on the grounds of "it's my taxes that are funding all this", you should see how much my aussie and kiwi mates scammed out of the British Government and various credit card and travel insurance companies whilst they were backpacking in the UK - it works both ways
Your bike'll be a no-goer but as an example, if you have to wear overalls or a uniform of any kind (that includes logo'd polo shirts) you can claim back laundry fees which is about 150 bucks -no receipt req'd. Depending on your job you might be able to claim a shiteload of other goodies too.
BTW if anybody objects to this on the grounds of "it's my taxes that are funding all this", you should see how much my aussie and kiwi mates scammed out of the British Government and various credit card and travel insurance companies whilst they were backpacking in the UK - it works both ways
scblack
Leucocholic
ja_har
Likes Dirt
Tax Deduction
To claim as a tax deduction it has to be used to generate taxable income, transport to and from your place work is not counted as generating taxable income, merely transport to your place of work.
So no you cannot claim it as a tax deduction.
But.... if it was used to generate income, ie a bike courier or a professional cyclist, then a bike becomes tax deductable.
Otherwise, wouldn't we all be doing it!
To claim as a tax deduction it has to be used to generate taxable income, transport to and from your place work is not counted as generating taxable income, merely transport to your place of work.
So no you cannot claim it as a tax deduction.
But.... if it was used to generate income, ie a bike courier or a professional cyclist, then a bike becomes tax deductable.
Otherwise, wouldn't we all be doing it!
Drizz
Likes Dirt
Yep, got to get the ute to get up the hill to check the water at the top, ride down on a DH Comp to check it at the bottom, rinse and repeat every 15mins and claim both the ute and DH Comp for tax purposes, makes perfect sense.
Although the travel from home to your work is not tax deductible, but the travel between your workplaces is. For example if you have a second job in a local pizza joint than you can claim the travel between your first and second place of work as a tax deduction.
captainmorgan
Likes Dirt
Tell him he's dreamin!
With your logic, I guess that means my car and motorbike are tax deductable as they get me to work.
Unless you bought the bike to work as a bike courier you're out of luck.
With your logic, I guess that means my car and motorbike are tax deductable as they get me to work.
Unless you bought the bike to work as a bike courier you're out of luck.
Drizz
Likes Dirt
Did you use your car to get from one workplace to another workplace? Say if you work in the office and have to goto the warehouse, you can claim the trip between the warehouse and office as a tax deduction if your company did not reimburse you for that expense. It works the same if you have 2 jobs and you needed to get from your workplace 1 to your workplace 2. Only time this does not apply is if the trip is between your home and your work.
The problem now is how will you apportion the expense of your bike between work and private trips. You can use logbooks or just accept the statutory formula for a motor vehicle, but how does a bike work in this instance? That specific I dunno.
:EDIT: I am not a qualified TAX accountant so I am going by whats in tax pack 2006. So yeah know this before you send your lawyers after me.
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125hardtail
Likes Bikes
I think the motor vehicle calculation only account for the expenses associated with the running of the vehicle such as petrol. The only questions asked (from memory) relate to the distance travelled and the size of the engine. If this took into account depreciation of the vehicle they would need to know a purchase price or value of the vehicle.
Im pretty sure you could only claim depreciation on the bike (that is, if you are entitled to anything) and it would not have anything to do with the motor vehicle calculations in the tax pack.
To work out the depreciation you would have to have a lifespan for the bike. On commercial buildings it is something like 40 years whereas a computer would have a much shorter life. I wonder where a bike would be considerd to fit in.
ja_har
Likes Dirt
Correct, You would be only able to claim depreciation of the bike as it would be classed as a capital asset, most likely as 'tools of trade'. Then you need to depreciate it over the lifetime of the bike which may or may not be stipulated by the tax office. I could look it up but I just could'nt be arsed...
PINT of Stella. mate!
Many, many Scotches
If you do manual work or work outdoors you can usually score a bit of cash for a leatherman and a camelbak...
Hopper
Likes Dirt
If you did manual (hehhhee manul) work then you woulld become a better rider.... what happens if you became a proessional and riding was your only income? Would you be able to claim the bike thraen?
Mattydv
Likes Bikes and Dirt
To claim as a tax deduction it has to be used to generate taxable income, transport to and from your place work is not counted as generating taxable income, merely transport to your place of work.
So no you cannot claim it as a tax deduction.
But.... if it was used to generate income, ie a bike courier or a professional cyclist, then a bike becomes tax deductable.
Otherwise, wouldn't we all be doing it!
Apparently so ^^.