Are you left scratching your head when it comes to claiming deductions for motor vehicle expenses?
Ok, well here is the 'low down' to help make it ALL a little clearer ... the first thing to remember is you can only claim for expenses that are part of the everyday running of your business. Your obligations and the deductions you can claim depend on two things:
A Car - designed to carry a load of less than one tonne and fewer than nine passengers (many 4WD's and some utes are classed as cars).
Other Vehicles - including motorcycles, minivans capable of carrying nine or more passengers, utes designed to carry loads of one tonne or more.
If using a car the cents per kilometre or logbook method is used to calculate motor vehicle expense deductions.
For other vehicles used by Sole Traders or Partnerships your claim must be for actual costs incurred based on receipts.
Can only claim the actual costs for car or other vehicle expenses that are part of the everyday running of the business. Care should be taken if the vehicle is also available for private use by an employee as fringe benefits tax might apply. If an employee of the company or trust uses their own vehicle for business related purposes you can pay them an allowance or reimbursement of running costs and your business can claim a deduction for the allowance/reimbursement paid.
It's worth noting:
Working out motor vehicle expenses for your business can be tricky. At Bosco Nowra we can help save you the headache and get your motor vehicle expenses right.