Drizz
Likes Dirt
It will be true if the pros actually owns the bike they ride or "rent" it from their sponsors.
Claiming a bike as a tax deductable item
- Thread starter LukeB
- Start date
red_d0g
Likes Dirt
Now I'm having a bit of a grave dig here! so excuse me for bringing this back up. But it is a legitimate question none the less.
So at the time of purchasing my bike, I was working full time as a trail builder and using my bike to ride and test the trails that were being built. Over the duration of working full-time I literally only used my bike once or twice outside of work (flogged after work weeks and weren't riding much at the time)
now am I able to claim this as work related expense as it was actually used for my work? I'd prefer to follow the rules etc, I just can't find much info about it.
Thanks!
So at the time of purchasing my bike, I was working full time as a trail builder and using my bike to ride and test the trails that were being built. Over the duration of working full-time I literally only used my bike once or twice outside of work (flogged after work weeks and weren't riding much at the time)
now am I able to claim this as work related expense as it was actually used for my work? I'd prefer to follow the rules etc, I just can't find much info about it.
Thanks!
redbruce
Eats Squid
I'm not a tax person, but a few years ago a mates son was a bicycle courier and he claimed his, along with maintenance costs.
Can't see how this is any different. Its a tool of trade.
mitchy_
Llama calmer
yep, as it's being used for work; i cant see why not.
no different to me being able to claim PC related costs due to my field, as opposed to someone who sits on a pc all day watching porn, masturbating and eating doritos.
moorey
call me Mia
you monster! They are organic corn shops, stone ground.
Ive contemplated the above with my new job. Getting paid to ride with my client a couple of times a week, and him using my bike. Could be the perfect crime :spy:
marc.r
Likes Dirt
This should actually be fine.
Just think... could you actually do your job without your bike? Did your workplace buy your bike for you? If not I would claim that bad boy. If the tax office questioned you stick to your guns. If its really bad just cop it and pay back the difference.
As far as I would advise it would be classed as a tool under work related deductions. as im assuming your bike is worth more than $300 you will have to depreciate it. I would estimate its useful life to be about 3 years. If you are questioned say you used your reasonable judgement based on the closest ATO guideline asset (motor scooter).
Knuckles
Lives under a bridge
Isn't this your actual job description?
redbruce
Eats Squid
A good point I missed in my post.
bell.cameron
Likes Dirt
I make porn :no idea: just put it down as research everytime.
However, i also attend tafe as part of my work which required me to buy a beast of a gaming computer in order to run word at a sufficient speed to complete assignments. I see no issue here? Perhaps if we had a government capable of spending money on things other than holidays, hookers, rent, axing past policies, destroying higher education, denying a reasonable NBN, importing workers and undoing every advance we had in the last 10 years in regards to climate change I may feel inclined to be more reasonable with my cliaim.
swaz
Likes Bikes and Dirt
You got a new gig? Not changing the lives of the misfits and social retards booted out of school anymore?
swaz
Likes Bikes and Dirt
Why not? Computers and such are 33% p.a?
i actually need a bike to perform the duties my work place has asked me to do. However it is only once a week for 100 minutes or there abouts. The mathematical backflips and logs aren't worth the small amount I could claim. KM's traveled for work is where your biggest returns are gained from, in my field anyway. I guess I could buy a new bike and claim the depreciation on it and running expenses but it wouldn't be worth it financially.
I also chuckle when people say, especially work places, "it's a tax deduction" as if somehow justifies you spending your own money on business items for them and you get 100% of it back. I actually had a lengthy discussion with someone recently about the fact you do not get 100% back on your deductions. If you spend $30 on something that is a deductable, you don't actually get $30 back.
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moorey
call me Mia
That IS my new gig, cock eyes. Sounds like I have, or should be, teaching YOU.
swaz
Likes Bikes and Dirt
Sorry, my bad. Haven't read the Moorey School for the Gifted newsletter yet so I am not up on the latest.
speedyjonzalas
Likes Dirt
Thought I'd add some info here seeing as I am a qualified accountant.
If you are a bike courier then yes you could claim it as a deduction. (Depending on the cost and date you bought it you may get an an immediate 100% deduction).
Similarly if you build trails for a living and need one to test them then you could do the same.... but as someone else mentioned you would have to apportion this on a work use / private use basis as I simply dont believe this type of bike would be 100% work related.
Honestly, even if you tried claiming 50% I would not be surprised if the ATO came a knocking at your door.
A key issue here is benchmarking - if the ATO deems you having deductions that exceed the norm for your type of work then they will definitely check your details. As an example, buying a $5k bike and claiming it on a $50k income is probably going to push you over those benchmarking boundaries.
Then theres also the added issues of proof. Eg
- Did your employer say you had to provide your own bike for testing the tracks
- Was a bike available for you to use should you not have bought one
- Did you have to test the tracks or was there others that were hired to do just that
- Where is the bike stored overnight
- And a multitude of other questions.
Honestly, the ATO hates people who try to sneak in out of the ordinary expenses and I always advise my clients to stay clear of claiming expenses where there is a question mark to begin with.
If you are a bike courier then yes you could claim it as a deduction. (Depending on the cost and date you bought it you may get an an immediate 100% deduction).
Similarly if you build trails for a living and need one to test them then you could do the same.... but as someone else mentioned you would have to apportion this on a work use / private use basis as I simply dont believe this type of bike would be 100% work related.
Honestly, even if you tried claiming 50% I would not be surprised if the ATO came a knocking at your door.
A key issue here is benchmarking - if the ATO deems you having deductions that exceed the norm for your type of work then they will definitely check your details. As an example, buying a $5k bike and claiming it on a $50k income is probably going to push you over those benchmarking boundaries.
Then theres also the added issues of proof. Eg
- Did your employer say you had to provide your own bike for testing the tracks
- Was a bike available for you to use should you not have bought one
- Did you have to test the tracks or was there others that were hired to do just that
- Where is the bike stored overnight
- And a multitude of other questions.
Honestly, the ATO hates people who try to sneak in out of the ordinary expenses and I always advise my clients to stay clear of claiming expenses where there is a question mark to begin with.