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Personal assets to proprietary Firm

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Ankit Aggarwal

51 Points Posted on 28 September 2021

I have a car on which a loan is also there. I am starting my new proprietor firm. At which value can I bring my car into my proprietary business. Also what about loan on the same. Can I bring the loan also to my proprietary business and claim m interest payments expense?

Replies (2)

Quick Summary

When starting a sole trader firm, you can bring your personal car into the business accounts at its written-down value. The associated car loan can also be incorporated, allowing you to claim depreciation and interest payments as business expenses. However, ensure the loan is correctly transferred to the business's name to facilitate these claims.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 29 September 2021

No loan payments cannot be brought in business name as it is already being running under your personal name in bank

CA Raj Doshi

Practising CA

5649 Points Posted on 29 September 2021

Certainly you can bring the car and car loan in the proprietary business books of accounts. car shall be bought in the business at the written down value by calculating notional depreciation from date of purchase till start of business. Also interest payments and depreciation can be claimed as business expense.