The Profit Generator Show with Nathan Rigney

Taking a Car Out of Your Company? Here’s What It Could Really Cost You

Nathan Rigney Season 2 Episode 12

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0:00 | 7:25

You own the company. Your company owns the car.

So surely transferring that car into your personal name is just a matter of changing the rego?

Not quite.

In this video, Nathan breaks down a practical example of what can happen when a company-owned motor vehicle is transferred to a director, shareholder or other related party.

We cover:

🚗 Why you need to establish the vehicle's market value
💰 What could happen with GST
📊 How the vehicle's written-down value can affect the company
🧾 Potential company tax consequences
🚘 Stamp duty and transfer costs
💸 What happens if you don't actually pay the company for the car
⚠️ When Division 7A could enter the picture
📆 How interest and repayments could increase the cost over time

The biggest lesson?

Don't transfer the vehicle first and ask your accountant about the tax consequences afterwards.

Work out what the transaction could actually cost before you make the move.

👉 Need help understanding your business structure or tax position? Visit https://ngraccounting.com.au

#CompanyCar #Div7A #BusinessTax #GST #SmallBusinessAustralia #Accounting #BusinessOwner

This podcast provides general information only and is not intended as personal financial advice. The information presented here does not take into account your individual financial situation, investment objectives, or particular needs. You should consult with a qualified financial advisor before making any financial decisions based on the information in this post. The author and website owner are not liable for any actions taken based on this general advice.