Work-related car expenses

Work-related car expenses are 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.

You can claim car expenses you incurred in performing your employment duties.

You can also claim the cost of using your car to travel directly between two separate places of employment when you have a second job, providing one of the places is not your home.

You cannot claim for the normal trip between home and work, unless:
• you use your car to carry bulky tools or equipment (such as an extension ladder or cello) which your employer requires you to use for work and cannot leave at work
• your home is a base for employment (you were required to start work at home and travelled to a workplace to continue work for the same employer), or
• you have shifting places of employment (you regularly work at more than one place each day).

If your claim for work-related car expenses is 5,000 kilometres or less, you can choose one of the following methods to work out your work-related car expenses:
• cents per kilometre method, or
• logbook method.

To claim work-related car expenses over 5,000 kilometres, you must use the logbook method.

If you qualify to use both methods, you can use whichever method gives you the largest deduction or is most convenient.

If you would like to discuss about the work related car expenses, please contact us.

Disclaimer:
The material published is intended for general information only and is not legal advice or other professional advice. You should therefore consider obtaining independent advice that considers your personal situation and objectives before making financial decisions.