D1 Work-related car expenses 2015

how to work out tax deductions

For information about what expenses you claim as car expenses (item D1 ) and what expenses you claim as travel expenses (item D2 ), and some examples of trips you can and cannot claim, see Car and travel expenses .

This question is about work-related expenses you incurred as an employee for a car you:

  • owned (even if it is not registered in your name)
  • leased (even if it is not registered in your name), or
  • hired under a hire-purchase agreement.

Owned or leased cars

You can claim at this item your work-related expenses for using a car that you owned, leased or hired (under a hire-purchase agreement).

You cannot claim at this item any expenses relating to a car owned or leased by someone else, including your employer or another member of your family. However, we consider you to be the owner

or lessee of a car and eligible to claim expenses where a family or private arrangement made you the owner or lessee even though you were not the registered owner. For example, we would allow you to claim for a family car that was given to you as a birthday present and which, although it was not registered in your name, you used as your own and for which you paid all expenses.

If you owned or leased a car or hired one under a hire-purchase agreement, you can use one of the four methods explained in this question to claim your work-related car expenses.

Depending on the method you choose, you will need to know or estimate your business kilometres. Business kilometres are the kilometres you travelled in the car in the course of using it for work-related purposes.

Did you have any of these work-related car expenses?

Source: www.ato.gov.au

Category: Taxes

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