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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.
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.
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.
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?
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