I have a job which requires me to be on the road a great deal and I have to use my own car. KPG Taxation, Shepparton explains what you need to do so that you can claim a tax deduction for your car.
There are two different methods for claiming work-related motor vehicle expenses and each has different record-keeping requirements. To use the method that ensures you the best claim it is advisable to keep a logbook and all receipts for expenses (e.g. insurance, registration, repairs, services, tyres, etc.). You do not have to keep receipts for petrol as KPG Taxation, Shepparton can work that out for you using a yearly average formula. Your logbook should be kept for a minimum of 12 consecutive weeks and generally, it will be valid for five years unless there are significant changes in your circumstances. You also need to keep the opening and closing odometer readings for each year.
It is not necessary for you to use the same claim method each year. The choice of method should be made on the basis of which is more favorable to you and which you have the appropriate records for. If you don’t have a current logbook or have not retained all receipts you will be limited in which method you can choose. You cannot, however, claim any car expenses if your car is salary packaged.
For any tax-related queries feel free to visit KPG Taxation, Shepparton
Address: Suite 1, 12-14 Fryers Street, Shepparton VIC 3630, Australia