Claiming loan interest for car

Claiming loan interest for car

Didn't find your answer?

ITA 2007 s388 seems to imply that you can only claim interest on a loan to buy plant and machinery for 3 years.

If you have a car loan which spans 5 years, can we only claim the first 3 years worth of interest?

I'm unsure whether a car is "plant and machinery" for this purpose...

Replies (3)

Please login or register to join the discussion.

avatar
By cparker87
17th May 2011 13:12

.

I think there is a bit that specifically excludes cars, worth checking though

Thanks (0)
avatar
By Ernest N Dever
18th May 2011 13:12

Agreed, yes and why?

I agree with your interpretation of S.389 that relief for interest under S.388 is only effectively available for three (and a bit) years.

Yes, a car is plant and machinery. It's machinery.

I don't understand exactly why S.388 is in point though.  S.388 only applies in the situation where the P&M in question is owned by one partner but used by the partnership.  If the partnership owns the car, the interest is deductible from partnership profits under general principles.  If one partner owns the car, I'd find it hard to accept that it's "in use" for the partnership business.

Thanks (0)
avatar
By cristineH
20th Nov 2014 07:34

Indeed, saving cash to purchase a brand new vehicle is not the easiest thing you can do. That is why it is so essential to go to a website I found and get pre-approved for an auto loan. Find the car that you love, and you will already have the cash ready for the transaction. How many times have you needed details concerning a new or used motor vehicle and resorted to an online search? Look no further, everything you will want is at http://www.cardealexpert.com/auto-loans/ .

Thanks (0)