I have recently started a small home computer support business to complement my full-time work as an IT professional.
My question is: Can I claim the 50% small business tax rebate on the purchase of a new laptop if I will be using it for part-private use?
There are a series of eligibility tests for the investment allowance. One of these is the purpose test. To claim the investment allowance you must be able to demonstrate that at the time you started to use the laptop it was reasonable to conclude that it was to be principally used for the purpose of carrying on a business in Australia.
The fact that there may also be some private use does not preclude your entitlement to the investment allowance. There is no apportioning between business and private use. It is all or nothing.
Providing the main purpose of the laptop is for your business and this would be demonstrated by usage being more than 50% business related, then you are entitled to the investment allowance.
The only issue you may have is to be able to satisfy that you are in fact carrying on a business. It might be a good idea to chat this through with your accountant.
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