Every tax claim you make has the ability to boost your return. But to be a legal claim, it must be directly connected to you earning assessable income. Plus you must have incurred the expenditure and not been reimbursed by your employer.
But, did you know the following Five Facts about ……
- Did you know there are two car claim methods – set rate per km or logbook?
- Set rate per km is available for eligible business km up to 5000km annually. You do not need to keep receipts, but you do need to keep a record of how you calculated your annual km claim.
- Log Book method is only available if you travel more than 5000 eligible km for work purposes, requires a 13-week logbook to establish % use of your vehicle and you must keep all your receipts in relation to vehicle purchase, finance repayments, petrol, repairs, rego, insurance etc.
- If you receive any car allowance, then it needs to be declared as income before you can make any car claim.
- In most cases, travel to and from work is not considered to be claimable work km – but there are some exceptions.
Do you think you might be able to include a motor vehicle claim in your 2021 tax return? If so, why not put your return in the hands of an experienced tax professional?
