If you have a car and you use it for work – you would be pleased to know that you can claim the expenses (related to the business costs of using your car to do your work) as a tax deduction on your tax returns Kununurra. For you to be able to claim these car expenses on your tax returns Australia, you need to use any of the four methods below:
NOTE: Before you can claim under any of these methods, you must be the owner of the car. Also, you need to follow the record keeping requirements. If you are not too sure on how to go about things, it might be a good idea to consult with tax accountants, and make sure you’re on the right track.
Method 1: 12% Of Original Value
- 12% of the original value of your car will be the basis of what you can claim. The luxury car limits will apply here.
- During the income year, your car should have travelled more than 5,000 business kilometres.
Method 2: Cents Per Kilometre
- There’s a set rate for each business kilometre you travel – which will serve as the basis of what you can claim on your tax returns Kununurra. Under this method, you will be able to claim a maximum of 5,000 kilometres on your tax returns Australia. Your claim must only be limited to 5,000 even if you travel more than 5,000 kilometres. Alternatively, you can use another method of claim – or use the professional services of tax accountants to make your life easier.
- To make your claim, you don’t need written evidence. Diary records would be good enough to demonstrate that you have incurred the expenses.
Method 3: One-Third Of Actual Expenses
- One-third of your car’s expenses can be claimed as a tax deduction.
- During the income year, your car should have travelled more than 5,000 business kilometres.
- For all the other expenses for the car, you should have written evidence of oil and fuel costs.
Method 4: Logbook
- When you make a claim on your tax returns Kununurra for each car expense, it will be based on the business use percentage. For this, you need to keep a logbook for a minimum of 12 weeks. This must be updated every 5 years.
- Throughout the start and end period that you have owned or leased the car, you should have odometer readings.
- Also, for the logbook period – you need to keep details of all the kilometres you have travelled.
- All expenses related to the operation of the car can be claimed as tax deductions on your tax returns Australia. You, however, need to justify your claim by presenting receipts.
IMPORTANT NOTE: You cannot claim any of the car costs if your car is provided by your employer – or if it is part of your salary package. Get advice from tax accountants to figure out the best way you can claim your car costs this financial year.