With the high amount of cash needed to buy a boat, say around a 5- 6 metre craft, has anyone ever looked at being able to lease one just like a company car is done?
I realise there will be a residual amount to pay, but hell, if the lease covers boat maintenace, trailer service and engine service, it might be worth it.
Appreciate a PM is someone knows of a business doing it for big or small vessels..
Peter
Peter,
there is a company who will be starting up in bissy called Boab Boat hire, they may suit your needs
http://www.boabboathire.com.au/
Garry
Retired Honda Master Tech
Check with your accountant. I'm pretty sure you can claim a boat through your business under a "client entertainment/service" type claim ?
to lease a Boat os no different to leasing anything else, be it a car, a computer or whatever, it just done through a finance company.
A lease can work out very expensive on a boat, you are better off with a baloon payment method.
For example $100k boat, you have a 40% baloon payment due at the end of 5 years to pay $40k . You end up with a loan for only 60% $60K of the cost and chances are after 5 years your circumstances change and you would be after a different boat anyway. Just sell the boat and pay out the 40% remaining. If you like the boat, refinance and pay off the rest.
I also think that anything other than a car is grossed up by 48% for FBT purposes.....
A word of warning (ok, a few words):
- to claim a boat for entertainment will quickly lead to a very thorough tax audit. Bank on it.
- if you still wish to try it, you will have to keep a VERY DETAILED LOG, including every trip, who was there, and so on. You can only claim for Clients, not for yourself, your wife, or your kids/family and for God's sake, don't try to claim any fishing kit!!!
- make sure a very significant amount of the work your boat does is for work. If it's occasional, they may well decide you are doing this to get a dodge, and they don't take to that at all kindly.
- if you want to try it, get a GOOD Accountant, NOT A CHEAP ONE, and DO NOT TAKE ADVICE FROM H&R Block or similar.
My advice?
- See if someone will do a chattel mortgage, with a residual of say 40%. You still have to pay interest on the 40%, it's not like taking a 60 grand loan on a 100 grand boat, and you had better be sure the boat will be worth 40 grand at the end...
- even better? If this is a luxury you cannot afford to pay down to zero, you are better off not buying it. Try something smaller, pay it off, save some money, get the bigger one next time. You see if it has a residual, you will never, ever have any equity, so if you suddenly have to sell it, you will get effectively nothing for it, or you may lose out. If you are paying down to zero at least you might get some of the sale cheque.
Cheers,
Dad (sorry, that was TIM!)
Carbon Really Ain't Pollution.
yep, on Tim side on this one, BUT it still can be done, I just reckon unless you have some sort of racket or need to "launder" some money or something, if you can't afford it, don't buy it, pretty simple accounting really.
Grandad! well Noel actually.
Originally Posted by Noelm
Well, that's nice for a change, GRANDAD!!!
Cheers,
Tim
Carbon Really Ain't Pollution.
hehe, glad to help with any advice Son!
If you are talking about leasing with pre tax dollors (ie salary sacrifice) it can be done, but as Heath said, it will be grossed up for FBT purposes. In the end its not worth it unless its free money from a company that wont give it to you in salary (ie, for their tax dodge).
God I thought it was my wife writing this thread..... "if you can't afford it you can't have it!!.. yes dear!!"
really, thanks for the comments all.. including you grandad...
Why don't you have a look at boat share.
Then someone else looks after it.
Peter,
Is this for you or for the VMR?
White Pointer
The simple answer is yes, the long answer requires a sh*t load more info, but in the long run it will come down to your credit worthyness, high risk, low chance, low risk high chance. Why do you want to lease it being the first, if it is to get the repayments down, leasing gets the monthly committment down but to eventually own the vessel it will cost you more then a straight loan over the same term or is it for some business purpose? If it is for business ask your accountant before you consider what type of finance package to apply for. There can be a large variation in GST and tax benefits that you need to consider.
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