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  1. #11
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    Default Help! Any tax accountants able to answer a Q about an associated lease?

    Quote Originally Posted by nattie84 View Post
    Probably best to speak to your accountant as it doesn't really make sense to me but it's hard without having the full picture
    Thanks it's a bit hard to explain. Are you a tax accountant?

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    Quote Originally Posted by nicole83 View Post
    Thanks it's a bit hard to explain. Are you a tax accountant?
    Sure am

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    Quote Originally Posted by nattie84 View Post
    Sure am
    I don't really have an accountant but should probably look into getting one. Thanks again for taking the time to read.

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    @nicole83 You don't have to use the depreciation schedule provided - for example, in year 2 (2016), the depreciation should be $3750 (25% of $15000). You're still going to have a profit though and this profit will get bigger each year as depreciation is reducing, but this is assuming you have no other operating costs. What about rego, ctp, insurance, interest? Do you pay those things? I assume your husband gets a fuel card..

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    Default Help! Any tax accountants able to answer a Q about an associated lease?

    .
    Last edited by witherwings; 04-05-2017 at 19:51. Reason: Double post

  6. #16
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    Quote Originally Posted by Applemummy View Post
    Hi, don't think that you are entitled to deductions from the novated lease or associated lease as the tax was not paid on that part of income to finance the car. And don't include the payment in your income too. If that's the question.

    If you are worried about fringe benefit tax, the company who does the associated lease should have done all the calculation for you and included the amount in your payment. However, if not certain, just give them a call and confirm.
    Novated lease and associate lease are not the same thing. In both cases, the employee (her husband) isn't able to claim deductions for the car, but with an associate lease, the associate (the wife in this case) claims operating costs for the car against income received from the company (employer).

    It's not a common arrangement as far as I know, I've done thousands of tax returns and never come across a client who had an associate lease arrangement.

  7. #17
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    Quote Originally Posted by witherwings View Post
    @nicole83 You don't have to use the depreciation schedule provided - for example, in year 2 (2016), the depreciation should be $3750 (25% of $15000). You're still going to have a profit though and this profit will get bigger each year as depreciation is reducing, but this is assuming you have no other operating costs. What about rego, ctp, insurance, interest? Do you pay those things? I assume your husband gets a fuel card..
    Ah see I thought I had to use that schedule as it was done through a financial advisor. The salary sacrificing company made us have the schedules drawn up and all parties sign to it.

    So basically we have two deductions come out of dh's pay. Pre-tax which I thought was for the lease/rent repayments then a post-tax deduction which = all the other expenses mentioned above. The salary sacrificing company keeps funds in an account for the other expenses then we draw on those funds when needed e.g. Rego is due. Fuel is automatically managed with them through the fuel card. So that just leaves me with the lease payments = rent part that I need to declare on my tax as income. But shouldn't the depreciation virtually cancel it out? Otherwise if it ends up making my income higher then I end up paying tax - right? I do have othe business expenses to claim like printer, stationary etc. but those amounts are relatively small.

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    too hard to understand the exact situation on here. i'm also a tax accountant and don't really get what's happening. prob best to go see a tax accountant who can go over the specifics with you face to face

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    Quote Originally Posted by witherwings View Post
    Novated lease and associate lease are not the same thing. In both cases, the employee (her husband) isn't able to claim deductions for the car, but with an associate lease, the associate (the wife in this case) claims operating costs for the car against income received from the company (employer).

    It's not a common arrangement as far as I know, I've done thousands of tax returns and never come across a client who had an associate lease arrangement.
    I have never seen it either.. I am a CA and own my own firm.

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    i've heard of novated leased but not associated leases.


 

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