Back from shops and I see even more nonsense...
Rod Iseppi wrote on Thursday, September 06, 2007 - 08:18 pm:thats it - THE END... no more
Yep, it will be. I'm actually gonna make up a new thread re novated leases for anyone interest, miles has no farken clue what he is talking about. Bear with me in te meantime while I close this off. Then he can reply on my other thread. So do that Miles, I'll post the link shortly. You've annoyed enough people today already.
Miles Baker wrote on Thursday, September 06, 2007 - 08:04 pm:In the end, who drives what?
Daniel has an old IS300 and reckons he's gonna get an IS250 then reckons he's gonna get an ISF maybe when it's used or something or who knows? If dreams were dollars Daniel would be a rich man. But they're not.
You drive a 40 yr old Mustang. I drive a 5 yr old IS300, so what? I don't consider your car anything special in the first place! And yes, I will get IS250 at the end of this lease. Not sure what will be after that, but when I can find a used 1-2 yr IS-F, then I shall get one.
Miles Baker wrote on Thursday, September 06, 2007 - 08:04 pm:Fact of the matter is on 80k you won't be buying an ISF. How do I know? I employ a guy who is on a 100k package. He wanted to buy one of those freakin Porsche Cayenne things. I pay his novated lease. Past 57k, I would not be able to claim lease payments unless the lease was on a company car. If he wants a lease for a 120k car, that's fine, but he would be paying most of the payment out of his after tax income. The dude looked at the amount that would be coming out of his income and nearly sh!t himself. Barely enough left to pay the rent and eat. Now you say you want a 12 month 65% residual? Yeah. I guess what I should have said was you can get a lease, but there's no point. You won't get much tax break. The only reason to do it is if you just don't have the money. I don't see the point in overextending yourself like that and neither did my employee. He bought a different car for 55k - just under the limit.
Geezus, you are wrong again!!! Everything you have said so far was wrong!!! Mate, I don't know how you run your business, but you must be the most incompetent and mis-informed business owner I've ever met. Have you actually seeked any advice on this or what?
ALL benefits subject to Fringe Benefits Tax, including cars, can be claimed as a deduction, both for income tax purposes, as well as GST etc. to the extent of the FBT being paid. Hell, you can claim a deduction for absolutely any private expenses like hookers even, as long as you pay FBT on it, it's fine!
The 57K limit applies only when the car is owned by the company (a novated car is owned by the employee), and it has the effect of reducing your claim for GST up to that amount, as well as depreciation up to that amount.
You obviously don't know sh|t! The lease payments on the car (no matter what the price of it is) are fully deductible for income tax purposes, as well as fully claimable for GST! Even on a $120K car! You do not depreciate the car in your books if it's novated, as it is not an asset to the company, hence the 57K limit DOES NOT apply. Hahahahahhahaa!!!! SO you have overpaid your tax hahahahahahahahahaha!!!!
ANd going back to my personal items, firstly you do not know what my salary is. And yes, admittedly it probably would not be wise to get a 120K car with my current earnings. Secondly, my payrises tend to be just under 20% per year, having said that I will get a second hand IS-F in 3 years time, I'm more than confident that when the time comes I will be able to afford it easy. I dunno what your 100K pa monkey does, surely not my area, so why compare him to me in the first place?
THirdly, 65% residual is required by law for 1 year novated leases.
And lastly, refer to my other thread (I'll post the link when I type it) as to how this works. I honestly feel sorry for your employee, becasue looking at what you have been saying so far your knowledge about FBT and novated leases is greatly innacurate and downright wrong. The figures you have presented to him were obviously way out of whack!
Miles Baker wrote on Thursday, September 06, 2007 - 08:04 pm:So anyway, believe what you want. But in the end, what do you drive? And what do I drive? You might get to do the books for your work, but baby, I sign the cheques at mine.
You obviously got huge ego problems... and it shows. Your immaturity just shines through your posts big time! ANd I'd still prefer to work for a booming mining/energy company then worry about running a business anyday.