Hi All, I am in business with a partner of which we each own a 50% share. In Dec last year I took advantage of the 50% small business tax deduction incentive to purchase a new car. The car will be 'owned' and registered by the company and was purchased via a chattel mortgage. My business partner also has a vehicle but it is privately owned and has a lease over the vehicle. We plan to keep effective personal P&L's on running expenses/lease payments incurred on each vehicle so one person is not incurring more expenses than the other and all payments balance out EOY. If there are any discrepancies then one of us will be effectively in credit. My question is, since I've purchased my car through the company to take advantage of the initial 50% tax deduction, plus ongoing depreciation, should that be taken into account with regards to my overall position? I believe it should as with a purchase price of $44,000 the 50% deduction alone will be $22,000 * 30% = $6600. This is $6600 the business wouldn't have seen (via tax deductions) without me putting the car through the company and think this should be taken into account when balancing our expenses and payments on vehicles at the end of the year, there is also the the ongoing depreciation of the vehicle. e.g. If the yearly cost to the company on my vehicle lease and running costs are $15000 then my year one net position is $15000-$6600 = $8400. If the yearly cost to the company on my business partners vehicle lease and running costs are $15000 then his year one net position is $15000. Hence I'm effectively $6600 in credit at the end of year one. I guess my simple view is if this doesn't benefit me then l end up paying for a lease (with company funds) on a vehicle at full price and don't see the benefit of the depreciation, it is just absorbed into the company. I may well have bought the car personally and taken out a lease to be in the same position as my business partner. We are seeing the account at the end of the week but wanted to understand my position a little better before then. Bit of a marathon story but any thoughts or feedback would be greatly appreciated. Thanks. Shane.