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Re: D2 Deductions for motorcycles

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I have a client who uses his motorcycle 100% for work purposes and I can see I need to use the D2 work related travel expenses to claim his deductions however, I can't work out what he can claim.

 

He doesn't receive an allowance and isn't reimbursed for any of the costs so all of the expenses are his out of pocket so would appear deductible. Unlike a 'car' though is he able to claim a depreciation amount? Does he need to keep a logbook etc even though it is 100% business use?

 

Do I also just enter all of his out of pocket expenses for the motorcycle for the year into the D2 section instead of at D1 like you would with a car?

 

I can't find any more information on this and I feel like I have read the ATO website over and over and I get stuck in a loop without my questions being answered.

 

HELP!

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Devotee

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Hi @Chameleon1,

 

Thanks for your post. If your client owns a motorcycle the use for work purposes, they may be eligible to claim costs associated with the use of the asset - for example, petrol, oil or repair costs. You can find a more extensive list of allowable vehicle expenses on our Deductions you can claim page.

 

Your client is unable to use cents per kilometre or logbook calculations to work out their claim - motorcycles are not considered to be cars for tax purposes, so the rules you'd use claiming at D1 don't apply here.

 

Hope that helps! Thanks.

 

1 REPLY 1
Highlighted

Best answer

Devotee

Replies 0

Hi @Chameleon1,

 

Thanks for your post. If your client owns a motorcycle the use for work purposes, they may be eligible to claim costs associated with the use of the asset - for example, petrol, oil or repair costs. You can find a more extensive list of allowable vehicle expenses on our Deductions you can claim page.

 

Your client is unable to use cents per kilometre or logbook calculations to work out their claim - motorcycles are not considered to be cars for tax purposes, so the rules you'd use claiming at D1 don't apply here.

 

Hope that helps! Thanks.

 

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