A perennial topic regarding tax deductions is claiming expenses for a car. The following notes summarise the most salient points when it comes to claiming a deduction for motor vehicle expenses. Of course every person’s circumstances may be different, but the following covers most of the relevant information.
Key points to keep in mind include:
- the way a claim is calculated depends on your business structure
- if business changes structure, your entitlements and obligations may also change
- you must apportion expenses between business and private use
- records need to be kept for five years.
The common types of motor vehicle expenses you can claim include:
- fuel and oil
- repairs and servicing
- interest on a motor vehicle loan
- lease payments
- depreciation (decline in value) of the vehicle.