Lately I have found myself discussing the rules around claiming motor vehicle expenses quite frequently with clients so what better topic to blog about?
The following rules apply to individual taxpayers and individual partners of partnerships who use their car for income producing purposes. These rules do not apply to Companies or Trusts.
The claim methods available to you depend on the number of business kilometres travelled for the year.
In all these examples – you (or spouse) must own a car!
If you travel 5,000 business kilometres or less, you can use the:
If you travel more than 5,000 business kilometres, you can use one of the following:
If you use this method:
If you use this method, you: