A recent case between a taxpayer and the ATO has highlighted the importance of completing a logbook correctly if you want to claim deductions for car expenses using the logbook method.

The logbook method is used by those who claim more than 5000 business kilometres - under that, the simpler method to use is the cents-per-km method.

So, if you want your logbook to be considered valid by the ATO make sure that:

Further, for the first year in which you're claiming car expenses, the logbook must be meticulously kept for a continuous 12-week period.

So, once again, the importance of accurate and careful record keeping is highlighted!

Reid v Commissioner of Taxation [2019] AATA 4624 (12 November 2019)