What, Tax Time Already?
As we are nearing the end of the third quarter for the 2017-18 Financial year, It is time to start thinking about tax again.
I know what you’re thinking, but we just had Christmas, I know, right, the months fly past.
Claiming vehicle expenses on your Tax return.
Part of your tax return is claiming vehicle expenses
Remember to keep receipts of your actual motor vehicle expenses. Actual expenses can include the cost of:
- fuel and oil
- repairs and servicing
- interest on a motor vehicle loan
- lease payments
There are a couple of ways to claim vehicle expenses.
- Cents per km method
- Logbook method
- 1/3rd actual expenses (* this claim method has been removed from 1 July 2015)
What’s the best way to keep track of expenses?
I want to introduce you to a little App that is going to make your life simpler when it comes to tax time.
This app will log trips by GPS and record your odometer readings. It will also print a report to give to your tax agent.
A logbook needs to be kept for 3 months, but can last for 5 years.
Go ahead and download this app- it is free.
Logbook timeframe (from the ATO website)
If this is the first year you have used the logbook method you must keep a logbook during the income tax year for at least 12 continuous weeks. That 12 week period needs to be representative of your travel throughout the year. If you started to use your car for business purposes less than 12 weeks before the end of the income year, you can continue to keep a logbook into the next year so it covers the required 12 weeks. Each logbook you keep is valid for five years, but you may start a new logbook at any time. If you establish your business-use percentage using a logbook from an earlier year, you must keep that logbook and maintain odometer readings in the following years.