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Family Trust/Individual trustee- Car purchase

Discussion in 'General Investing Discussion' started by eki, 13th Dec, 2007.

  1. eki

    eki New Member

    Joined:
    13th Dec, 2007
    Posts:
    1
    Location:
    Brisbane
    As trustee of my family trust can I buy a car and claim the expenses?
     
  2. bundy1964

    bundy1964 Well-Known Member

    Joined:
    22nd Dec, 2006
    Posts:
    351
    Location:
    Adelaide, SA
    If you do wave goodbye to most of your asset protection for the trust. Cars are high risk unfortunatly.
     
  3. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Hi Eki

    The answer is yes you can, but why would you?

    Nick's the expert here but you'd need to use the car predominantly for business purposes (i.e. a business run by the trust) and there would be potential fringe benefits tax issues if you got a nice car.

    The point about asset protection is also a good one to raise. Whilst insurance is helpful, I wouldn't mix the car with passive investment assets.

    Cheers
    N