Crunch time for your logbook

?????????????????????????????????????????????????????????????????????????????????????????There are now only two methods for calculating motor vehicle claims in your tax return – the cents per kilometre method and the log book method.

Here’s some information from the Australian Taxation Office (ATO) website explaining the log book method:

  • Your claim is based on the business-use percentage of the expenses for the car
  • Expenses include running costs and decline in value but not capital costs, such as the purchase price of your car, the principal on any money borrowed to buy it and any improvement costs
  • To work out your business-use percentage, you need a logbook and the odometer readings for the logbook period. The logbook period is a minimum continuous period of 12 weeks
  • You can claim fuel and oil costs based on either your actual receipts or you can estimate the expenses based on odometer records that show readings from the start and the end of the period you had the car during the year
  • You need written evidence for all other expenses for the car

So if you plan to use the log book method this year, you best start your logbook as soon as possible so you can complete the continuous 12 week period in this financial year!



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