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Claiming a car- what do I claim and how?

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I'm a sole trader and purchased my SUV on the 11/01/2021 for $21,570 and use it 80% for work and 20% personal use as I already own another car. I don't have any receipts but could possibly contact the dealer or department of transport and get what is required? (what is needed to show as evidence?)

I've worked out that I will earn roughly $46,000 from my ABN.

What should I be claiming and how do I claim this? do I claim just my car or licensing and transfer costs also?

 

Sorry if this is a lot, just trying to wrap my head around it!

Thank you!

 

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ATO Community Support

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Hi @chloeea,

 

We have information available on our website under Claiming a tax deduction for motor vehicle expenses, which can help you understand what you can claim as a Sole trader.

 

When calculation the amounts to claim you would need to make sure you only claim the percentage used for business.

 

Expenses that you can claim include: fuel and oil, repairs and servicing, insurance cover premiums, interest on motor vehicle loans, registration etc.

 

You can use a logbook or diary to record private versus business travel. You would record things such as: logbook period start and end date, the total number of kilometres the car travelled during the logbook period and the car’s odometer readings at the start and end of the logbook period.

 

In regards to the cost of the car, what you could claim for besides the above mentioned would be a tax deduction for a depreciating asset.

 

The depreciation and capital allowance tool is available to help work out the deduction amount to claim.

 

I have provided links bellow to help you better understand what you can claim however, it may be beneficial for you to seek advice from a Tax Agent, as they can give you a greater understanding of the best way to run your business and an understanding of your tax obligations.

 

Links

Claiming a tax deduction for motor vehicle expenses

Expenses you can claim

logbook or diary

Claiming a deduction for depreciation

Depreciation and capital allowance tool

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @chloeea,

 

We have information available on our website under Claiming a tax deduction for motor vehicle expenses, which can help you understand what you can claim as a Sole trader.

 

When calculation the amounts to claim you would need to make sure you only claim the percentage used for business.

 

Expenses that you can claim include: fuel and oil, repairs and servicing, insurance cover premiums, interest on motor vehicle loans, registration etc.

 

You can use a logbook or diary to record private versus business travel. You would record things such as: logbook period start and end date, the total number of kilometres the car travelled during the logbook period and the car’s odometer readings at the start and end of the logbook period.

 

In regards to the cost of the car, what you could claim for besides the above mentioned would be a tax deduction for a depreciating asset.

 

The depreciation and capital allowance tool is available to help work out the deduction amount to claim.

 

I have provided links bellow to help you better understand what you can claim however, it may be beneficial for you to seek advice from a Tax Agent, as they can give you a greater understanding of the best way to run your business and an understanding of your tax obligations.

 

Links

Claiming a tax deduction for motor vehicle expenses

Expenses you can claim

logbook or diary

Claiming a deduction for depreciation

Depreciation and capital allowance tool