Many thanks everyone. Just got what I was looking for.
Have a good day
Accounting Gurus - Help Maximizing Tax Return (Just Bought a New Car)
Gostoso on 23/08/2016 - 21:59
Last edited 24/08/2016 - 11:08
Last edited 24/08/2016 - 11:08
Comments
My accountant sucks !!! :)
OZB feedback is way more valuable.
OZB feedback cheaper
Your accountant sucks, you are aware of that, and you continue using his services. One born every minute?
OZB feedback is way more valuable.
If you share all your financial info here, I'm sure we can all help. We promise not to share the info with 3rd parties like Whirlpool.
If you are getting a car allowance you can't claim on your tax too, it's double dipping.
Ato will fine you.
Unless your genuine business only expenses are more than the allowance (you would need to drive ALOT)
are you a tradie?Wrong.
A car allowance just gets added to your income for tax purposes so you need to deduct the running costs of the vehicle.
OP can claim everything he mentioned in his post.
You can claim lease payments or depreciation but not both. Interest is also tax deductible. You need to keep a log book for at least 12 weeks so you know what proportion of the car is used for businesses and non business and you Connolly claim expenses for the business percentage.
I also get a car allowance. I claim car washes too as my car needs to be presentable.
General Factual Information:
A log book is required should you wish to claim a motor vehicle on an actual cost basis. A log book would need to be kept for a period of 12 weeks which would last your 5 years.
Travel is typically not claimable to and from work. However you may be deemed an itinerant worker if you travel to multiple workplaces or have to carry bulky equipment (as an example).
Getting paid a travel allowance is not a free hit to claim motor vehicle running costs, you still need to justify your deduction in an audit scenario.
Depreciation can be claimed on a motor vehicle for which you would apply your log book %. When it comes to your interest on your car it would depend on how you paid for it i.e. did you redraw on a home loan to pay for it? or did you take out a car loan? Both have different methods to which you would claim interest…
However I agree with other comments above, speak to an accountant or tax agent re: this as they will sit down and properly nut out your activities to best explain how you can maximise your claim. If you are not happy with your accountant, there are plenty more out there which a wealth of knowledge available. For the sake of a couple of hundred bucks (average cost) to get your tax done, they would find that for you in deduction whilst protecting you with their advice.
Talk to your accountant.
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