balancing adjustment on sale of car

In Australia, selling a business-use car triggers a tax “balancing adjustment”: you compare the car’s termination value (what you got for it) with its adjustable value (its written‑down tax value). If the sale price is higher, the difference is assessable income; if lower, you get a deduction—usually only for the business-use percentage. Registered for GST? You may have GST to account for on the sale if you claimed credits when you bought it. Cars in a small‑business pool or instantly written off adjust the pool instead of the individual asset. Keep records of purchase, depreciation, sale and business-use logbooks, then run it past your accountant to keep the ATO from doing donuts on your spreadsheet.