Private ruling: Business deductions - motorhome
Date of advice: 10 June 2021
Published: August 2021
Ruling period: Year ending XXXX
Date scheme commenced: 1 July XXXX

Ruling: Q1: Can you claim a deduction for a percentage of the motorhome expenses when the motorhome is used for income producing purposes? | A1: Yes. Having considered your circumstances and the relevant factors, you will be entitled to a deduction for the percentage of the actual costs that relate to business use of the vehicle. Therefore, if the motorhome is used for both business and private purposes, you must keep records that allow you to work out the business-use percentage. Even if you put signage on a work vehicle and then drive it for personal reasons you still need to apportion the usage between business and private use. You generally can't deduct spending on capital assets immediately. Instead you claim the cost over time, reflecting the asset's depreciation (or decline in value). There have been recent changes for Businesses including Temporary full expensing. Further information can be found by searching 'QC 17053' on ato.gov.au

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. Your business requires you to travel to various destinations. You purchased a second-hand motorhome for XXXX. The motorhome has off grid power and internet for business operations. The motorhome is XXXX feet long including the driving area; approximately XXXX of the motorhome is used for the business. The motorhome allows a private and professional dedicated personal workspace enabling you to travel to further destinations. Your duties in the motorhome include client meetings, email work, website design, zoom client meetings, social media marketing, brochure and magazine design, editing, invoicing, and design. You also use it for accommodation for destination events and work-related activities. You spent a minimum of XXXX hours per week working in the motorhome during the XXXX financial year. The motorhome includes branding design, business number plate, and logo signage. Bulky equipment is required and carried in the motorhome for business purposes. The motorhome is designed to carry a load of one tonne or more and it is currently sitting at more than one tonne fully loaded.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1997 Division 40