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Re: Car Washing Expenses

Newbie

Views 8274

Replies 7

G'day Everyone.

We have a few employees here who have been provided with company cars. My question is can they claim car washing expenses on their tax returns. We stipulate the cars must be kept clean and tidy. Just wondering where they stand?

Thanks in advance.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Community Moderator

Replies 3

Hi @Swardle,

 

Thanks for your question.

 

Car washing expenses are considered to be a private expense.

 

Thanks

 

KylieS

7 REPLIES 7

Taxicorn

Replies 0

Wouldn't it be best all round if you reimbursed the employees?

 

Most helpful response

Community Moderator

Replies 3

Hi @Swardle,

 

Thanks for your question.

 

Car washing expenses are considered to be a private expense.

 

Thanks

 

KylieS

I'm new

Replies 2

What about TR 95/14 

 

Car wash expenses: A deduction is allowable for the cost of cleaning a car if it is used to produce assessable income (paragraph 164).

 

Therefore it seems that a tax deduction would be allowed for the employees. However apportioned for any private use so a logbook would probably be required to substantiate the claim.

Community Moderator

Replies 1

Hi @Swardle,

 

Thanks for your comments @Canpicck.

 

If your car is used for producing assessable income then you can include car washing if you use the logbook or one-third actual expenses methods to calculate your deduction.   

 

Having a company car that you are required to keep clean does not mean that you are able to claim this deduction.  

 

Thanks

 

KylieS

 

Taxicorn

Replies 0

@KylieATO 

 

How is being requested to keep a company car clean and pay for it any different to driving a truck that you don't own and being required to keep it clean AND being able to claim a deduction for that?

Newbie

Replies 1

Hi, I was wondering if you work in the community industry where I would need to use my car sometimes to take participant to appointments, shopping and to attend community activities. I was wondering if I can claim a percentage of getting my car wash as part of maintence of vehicle through tax

Taxicorn

Replies 0

@Beca 

 

Only if you keep a logbook and then only the business (work) use %.