Personal and private use of business assets

home desk for home and business use

Assets other than Vehicles

We know that business laptops, tablets, and mobile devices are often used personally. It’s a fact of life these days. If there is a considerable element of use that isn’t for business purposes, you’ll need to think about how much time that is, as a percentage.

Next is business photocopiers and printers. Again, if there is significant personal use you’ll need to estimate the percentage use between business and personal.

Stock and materials purchased by the business must be used by the business. So if you take any stock or raw materials home for your own use, you’ll need to let us know the dollar cost of these.

Vehicles

If your business owns a vehicle, your accountant will almost always ask if it’s available for private use. If it is, then we need to split the costs between business and personal use.

The most common answer we received is ‘no’, but this is usually incorrect. The important word here is ‘available’. You don’t actually have to use the vehicle for there to be a private use adjustment – it just needs to be available. That is, you could use it.

Motor vehicle expenses and adjustments is a topic on its own. We’ve proven this by dedicating a whole blog to it, and if you’re completing our year-end Tax Minimiser vehicles also have their own section.

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