Tax Facts
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RENTAL PROPERTIES
When you own a rental property there are many expenses that can be claimed through your tax return. Our two Fact Sheets below discuss the many aspects of owning a rental property and outline, in general, the tax implications.
Rental Property Q&A | Rental Property Expenses
MOTOR VEHICLE CLAIMS
If you are using your car for work purposes then you may be entitled to claim the business portion of these expenses as a tax deduction. You must be the owner of the car to claim under any of the below methods and the substantiation for each method is detailed.
Method 1 – Cents per kilometre
Your claim is based on a set rate for each business kilometre you travel and you can claim a maximum of 5,000 kilometres under this method. If you travel more than 5,000 kilometres the claim is limited to 5,000kms. Written evidence is not required but you need to be able to demonstrate that you incurred the expense. Diary records are sufficient.
Method 2 – 12% of original value
Your claim is based on 12% of the original value of the car. (Luxury car limits apply) Your car must have (or would have) travelled more than 5,000 business kilometres in the financial year.
Method 3 – One-third of actual expenses
You claim one-third of your car’s actual expenses. Your car must have (or would have) travelled more than 5,000 business kilometres in the financial year. You need written evidence of fuel and any other expenses.
Method 4 – Logbook
Your claim is based on the business use percentage of all car expenses determined by a log book that must have been kept for a minimum 12 week period. A new log book must be kept every 5 years. You will need odometer readings for the start and end of the period that you owned or leased the car. You need to detail all the business kilometres you have travelled during the log book period. You can claim all expenses that relate to the car and you will need to keep receipts to substantiate your claim. If your car is provided by your employer, or as part of your salary package you cannot claim any of the car costs