J.A.P TAXATION

Question : If the car is owned by 2 persons then how can they claim car expenses? Answer: Practice Statement Law Administration PS LA 1999/2 They can use one of the two calculation methods for income years from 1 July 2015: · cents per kilometre · log book. Each taxpayer should use only one method in any one income year in relation to a specific vehicle. However, each of the joint owners can use a different method to calculate their deductions if they wish. Cents per KM: Each joint owner or joint lessee can claim a maximum deduction of 5,000 kilometres for each income year. That limit applies to a taxpayer in relation to a particular car, not to the car itself; so, if each of the joint owners uses the car for separate income producing purposes, they can each claim up to 5,000 kilometres. Logbook method: If one of them is using the logbook method, the logbook must be prepared to show total KMs travelled by both the owners and the KMs travelled by the p...