Can you claim your car on tax?
Lots of people have cars, but if you use your car for work can you claim it for tax?
Money Magazine’s Peter Freeman said there were four main ways to claim a tax deduction for work-related car expenses.
Three of the four ways required record keeping so it was best to pick a way before the start of each financial year.
If it was too late to keep records, the best bet was to consider the option which involved claiming cents per kilometre travelled. The ‘cents per kilometre’ option allowed you to claim a set amount for up to 5000kms of business-related travel.
The other options required a detailed travel low for at least three months. The log helps the ATO work out how much travel you did for business, as a percentage of your total travel time.
This was reflected as a percentage of running costs.
Mr Freeman said the most demanding method involved claiming a third of your car’s actual running cost, such as insurance, rego, services, fuel and finance.