Besides obviously using a log book, what's some creative ways to maximise your deduction?
Maximise car expense deductions?
Orgazmo on 06/08/2013 - 21:47
Comments
Methods 1 and 2 don't require any evidence, besides being able to explain how you come to your conclusion for kms travelled.
Method 1 you can claim up to 5000km. It would seem you can claim this limit per car.
Method 2 is 12% of the original value. Depending on your engine size and assuming you would only claim 5000km for method 1 this starts to work out better if your car cost around $30,000. It's capped at a certain limit so you can't claim 12% of a $200,000 car. You can do the maths and work it out.
http://calculators.ato.gov.au/scripts/axos/help/car1.htm#_To…"Besides obviously using a log book, what's some creative ways to maximise your deduction?"
Good try Mr Tax Man, I'm not giving away any of my secrets :-)
There are four methods you can claim deductions- you're allowed to choose whichever one leads to the most tax effective outcome for yourself.