When claiming for business/work-related car expenses, many miss out on maximising their deduction due to inadequate record keeping.
Also, failing to maintain a valid car log book can cost taxpayers dearly in the event of a tax office audit.
Did you know that without a log book the tax office deems your vehicle business use to be 0%? If you don’t have a valid log book we may not be able to maximise the deductions for your fuel, insurance, rego, repairs/servicing and other motor vehicle costs.
Who should complete a log book?
An individual wanting to claim a motor vehicle deduction if they have travelled more than 5,000 business/work related kilometres.A company or trust which has any motor vehicles.
How do I complete a logbook?
You can purchase a logbook from most newsagents or better yet keep your logbook electronically by downloading an app on your smartphone. The logbook must be kept for a continuous 12-week period that must be reflective of your typical travel throughout the year.
For each journey during the log book period you need to record:
- start and finish times
- odometer readings at the start and end of the journey
- kilometres travelled
- reason for journey (in the ATO’s view when noting the purpose just saying “business” will not be enough, more description is required).
What Next?
The requirements in keeping a log book can be complex. Feel free to give us a call on 07 5451 1118 or drop us an email at reception@mjjacountants.com.au
