Department of Transport - Transfer Fees

Just purchased a vehicle and paid the transfer fees

I live in WA we use the Dept of Transport for Registration of Motor Vehicle Fees

The Transfer of Registration from previous owner to us is

Transfer Fee $18.40

Vehicle Licence Duty of $2587.40

Total $2605.80

Can you please advise how you would enter this in Reckon Accounts

Comments

  • Kris_Williams
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    I would put it in a sub category of the motor vehicle expenses called Registration & Insurance. People have different ways to setup Charts of Accounts, but this is mine, in NSW there would be no GST not sure of your rules though

  • Bruce
    Bruce Member Posts: 439 Professional Partner Professional Partner
    edited October 2020

    My first reaction is that the transfer fees should form part of the cost base of the car and hence should be treated as part of the fixed asset rather than as an expense.

    This is very much a tax issue so check with your accountant. (I am BAS Agent, rather than a Tax Agent.)

  • Firstup
    Firstup Member Posts: 2

    I would put as part of cost of car if included in the price. thank you though. I like both ideas.

    There isn't any GST showing so I am thinking NCF code?

  • Kris_Williams
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    I would take Bruce’s advice and check with accountant, I have always put it to the expense account as it’s better to increase the expenses rather than assets, depending on if it’s an instant asset write off - then it makes no difference. This is only my opinion and will stand corrected

  • Kris_Williams
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    I don’t use NCF much these days as G11 is no longer reported in the BAS, I leave blank unless it auto recalls