Logbooks - ATO clearly says close enough is NOT good enough
Perrier Ryan • November 18, 2019
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:
- you show the date the journey began and ended
- you show the odometer readings at the start and end of the journey
- you accurately record the number of kilometres travelled.
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)
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