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)
If you're interested in knowing more about what they covered, please contact us at contact@perrierryan.com.au and put "Let's talk presentation" in the subject line; or call the office on (07) 3391 7566 and ask for Nicole Power, Olivia Ryan or Margaret Paskin,
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