Car Expenses Deduction Methods
Cost of Managing Tax Affairs
July 8, 2016
Business Travel Expenses
July 8, 2016
There are four different methods to use to make a claim for car expenses. Each method requires that the taxpayer has a record of or can estimate, the business kilometers.
Business Kilometers are the kilometers that have been travelled in the taxpayer’s car in the course of earning assessable income and this includes travel to a tax agent to have a tax return prepared.
The methods can be used are:
• Cents per kilometer – Limit to 5000 km per car.
• Twelve percent of the cost price of the car.
• Log book method.
• One-third actual expenses (business and private).
Where a car travels 5000 kilometers or less for work related or other tax deductible travel during a year the taxpayer can claim under either:
• Cents per kilometre or
• Log book metho.
Where the car travels more than 5,000 kilometers during a year for work related/ tax deductible travel the taxpayer can claim using one of the following methods:
• Cents per kilometer – Limit to 5000 km per car.
• Twelve percent of the cost price of the car.
• Log book method.
• One-third actual expenses (business and private).
Booksmart Accountants provides taxation, accounting, compliance and auditing services in Cranbourne, Lyndhurst, Lynbrook, Berwick, Carrum Downs and neighboring suburbs.
Call us today on 1300 300 106 to discuss this further.
Call Tax Accountants Cranbourne at 1300 300 106 for further information.
