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Company car used by Defacto Director

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Hi there,

 

The company has bought a car and it has been provided to the defacto director i.e. the partner of the director to use 50% for work and 50% for leisure.

My understanding that company can only claim 50% of the value of the car to write off in books and luxury car tax is non-deductible.

 

Question - Do I need to ask the director to give a declaration that the private use of the car is 50% under some format. Please advise.

 

thanks

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Former Community Support

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Hi @TAXLEARNING

 

There are a variety of ways you can establish the business deduction whether that be a logbook or diary. See our information at Separate private from business use for the detail how and what records to keep.

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Most helpful response

Former Community Support

Replies 0

Hi @TAXLEARNING

 

There are a variety of ways you can establish the business deduction whether that be a logbook or diary. See our information at Separate private from business use for the detail how and what records to keep.