As a sole trader - Can I claim a deduction for the interest on a car loan repayment?

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QsforTax

(I'm new)I'm new

3 July 2023

Hi,

I maybe silly for asking this but humor me please.

As a sole trader, using a logbook method, I've calculated that I use my car 60% for work.

If I buy a new car, for $45,000. (not including GST)

60% of $45,000 is $27,000.

On purchasing, I pay $18,000 deposit and take a loan on the $27,000 (e.g: chattel mortgage). ($18,000 for the 40% private use= so no loan then the $27,000 for the 60% of $45,000 for work use= so the loan is for the work portion only)

Can I claim 100% deductions on the interest on the loan repayment since the loan amount is the work percentage that was calculated to begin with ? or the interest deductions still has to be calculated at 60% ?

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