Tax Deductions

Claiming your Car Expenses

As your tax accountant, we may be able to assist you with making a claim for car expenses.

You must be able to demonstrate that the travel in your car was for income-producing purposes before it will be tax deductible - irrespective of whether you are in business or are earning income from salaries and/or wages.

When assessing whether the car travel is tax deductible, you must analyse each leg of a journey. Often there will be situations when you will undertake one leg of a trip that is non-deductible (eg. travel from home to work) and then subsequent trips on the same day that may be tax deductible (eg. you visit clients at their home after initially going to your office). As your tax accountant, we can guide you through the common instances of deductible travel.

The following is a list of the four general rules regarding car travelling expenses:

• home to work travel is non-deductible;
• itinerant travel is deductible;
• travel to visit a client’s business is deductible;
• and travel between two unrelated places of work is deductible.

As your tax accountants, Financial Dynamics will help you maximise your car expenses to ensure that you get your maximum tax deductions.

Call or email Financial Dynamics for an appointment now !

Tel: 02 4421 2345Fax: 02 4421 2340