Luxury Car 57581. A car purchased for more than the car depreciation limit has a maximum GST credit of one-eleventh of the limit. The maximum value you can use for calculating your claim is the car limit (irrespective of any amount you were paid for a trade-in) in the year in which you first used or leased the car.
Depreciation for Luxury Car Limit (applying "Car Cost ... (Tommy Myers) The cost of the car for depreciation is limited to the car limit at that time. The cost of the car for depreciation is limited to the car limit at that time. Luxury car leases are treated as a notional sale and purchase, with decline in value restricted to the car limit.
Special rules apply for cars with a value exceeding the car limit that restricts the amount of GST and depreciation you can claim.
But pump those brakes for a second.
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The cost of the car for depreciation is limited to the car limit at that time. Decline in value of cars is restricted to the car limit. This limit also applies for depreciation purposes to fuel efficient cars.
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