| Income Tax ? Car Expenses - Log Book Method. |
| Log Book Method |
A logbook is kept for a minimum continuous 12-week period. Business and total kilometres during the period are determined. The taxpayer is then required to make a reasonable estimate of the number of business kilometres traveled by the car during the year.
When making this estimate, taxpayers will need to take into account any log books, odometer records and changes in the pattern of business use of the car.
The business kilometre estimate is then divided by the total kilometres traveled by the car during the income year to arrive at the relevant business use percentage.
Allowable car expenses are multiplied by the business use percentage to calculate the deduction. Other than petrol and oil, which can be supported by odometer records, all expenses must be substantiated.
20th-March-2004 |
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