Just a quick question, I do not own the car (Sister Does) But I am the primary user (100%) she has another car she uses.
I am paying for all of the expenses of the car including (insurance, CTP, rego, servicing, fuel, repairs)
What am I able to deduct when it comes to tax time.
Edit: Yes I use it for work purposes. The particular query is about when using it for my casual job, it required me to drive from store to store all over nsw. The employer did not pay any fuel expenses etc.
Yup, can claim nothing unless it is used for work (and does not include just driving to and from work either).
If you use it for work and private you can only claim a proportion of the costs related to the proportion of time you drive for work. You will probably need to keep a log book of kms for this purpose.
Yes, I use it for work/private. There was a substantiated amount of driving when I was working as a casual driving from store to store all over nsw.
No
Is that No because I don't own it?
No cent per kilometre method for a vehicle you dont own.
but you can claim using log book method.
https://www.ato.gov.au/individuals/income-and-deductions/ded…
When reading it, does repair costs and servicing count as cost incurred from travel? or just fuel.
That is incorrect, you can claim cents per KM if you pay for all the upkeep of the car (registration/insurance etc) which shows a pattern of you being the 'de facto' owner or an owner by private arrangement.
Just put in place a private family arrangement whereby your sister has given you the car, then you could make the claim, otherwise no.
Per ATO website:
However, we consider you to be the owner or lessee of a car and eligible to claim expenses where a family or private arrangement made you the owner or lessee even though you were not the registered owner. For example, we would allow you to claim for a family car that was given to you as a birthday present and which, although it was not registered in your name, you used as your own and for which you paid all expenses.
What sort of proof is needed for the "family or arrangement". It is basically my car. Both my sister and acknowledge this. I have been paying all expenses including insurance etc even though it's in her name and have receipts and bank statements of proof they have been paid under me.
Not sure, but just a question of fact, but the documentation you have sounds reasonable and the fact your sister has another car only supports your case, you should be all good.
Thanks, yes I was thinking so, I also have all relevant proof of me paying all car expenses :) thanks
I'd expect that your ability to present receipts for maintenance would be considered fair proof of the arrangement, but IANAL.
I'll be going to an accountant for sure, just want to prepare my things.
Do you use it for work?