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_ashokr(Newbie)Newbie
15 Sept 2021

Hi All,Can any one please clarify below,Mr X is employed by a company and paid a 100k salary and a 15 k car allowance. With last year ITR, he claimed car expenses via logbook method - which includes 25% DV in value for the car value (57k car value as per ATO car value ) plus interest payment of the car loan 5 k, along with other running costs fuel, insurance, rego etc at 76% of business use.My confusion is, as a TFN employee getting a 15k car allowance, can he claim depreciation 25% DV, loan interest $5k..besides all other exp as a deduction and the total deductions come to 18 k @ 76 %.

Thank you for your time :)

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Bruce4Tax(Taxicorn)Taxicorn
15 Sept 2021

Mr X is employed by a company and paid a 100k salary and a 15 k car allowance. With last year ITR, he claimed car expenses via logbook method - which includes 25% DV in value for the car value (57k car value as per ATO car value ) plus interest payment of the car loan 5 k, along with other running costs fuel, insurance, rego etc at 76% of business use.My confusion is, as a TFN employee getting a 15k car allowance, can he claim depreciation 25% DV, loan interest $5k..besides all other exp as a deduction and the total deductions come to 18 k @ 76 %.

That is why he is better off claiming by log book method.

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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
15 Sept 2021

Mr X is employed by a company and paid a 100k salary and a 15 k car allowance. With last year ITR, he claimed car expenses via logbook method - which includes 25% DV in value for the car value (57k car value as per ATO car value ) plus interest payment of the car loan 5 k, along with other running costs fuel, insurance, rego etc at 76% of business use.My confusion is, as a TFN employee getting a 15k car allowance, can he claim depreciation 25% DV, loan interest $5k..besides all other exp as a deduction and the total deductions come to 18 k @ 76 %.

That is why he is better off claiming by log book method.

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