Vehicle costs deductibility?
Question from Clutha updated on 10th January 2014:
My rental property portfolio is in $1.8 million. I am about to buy a car for $40,000. How can I make the car purchase tax deductible? Many thanks.
Our expert Mark Withers responded:
Costs need to be incured in connection to the earning of income to be deductible. Reasonable vehicle running costs are deductible if you use the vehicle to actively manage your investments. You will need to keep a logbook for three months to prove the level of business use and will then seek to claim in this proportion.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.