What Can You Claim on Your Car Loan?
It’s around this time of year that financially conscious Australians start to think about their tax returns – the various deductions they may be able to claim, the amount they’re expecting to get back and all the paperwork involved.
For owners of assets like properties or cars, tax time is a little more involved. If you have investments or loans, even moreso. It’s important to understand what you can claim and how to arrange the necessary documentation. Otherwise, you may have a sub-optimal return.
You should always speak to an expert to get a detailed understanding of what you can claim and how much you should reasonably expect to get back. Generally speaking, however, these are the kinds of things you’ll want to consider:
Leased car deductions
If you’re leasing a vehicle as a business expense, you may be able to claim back the GST from the rental fees (or at least a percentage of it).
In some instances, you can claim the lease itself as a deduction. But this is dependent on a few factors, such as the depreciation limit.
Work-related travel costs
In most cases, provided you keep accurate documentation, you can claim back the money you spend traveling for work. Expenses from travels during the workday or going to and from meetings can all be claimed.
You can’t generally claim the money spent to get to and from work, but anything within work hours is usually possible to claim. Just ensure you keep a detailed log so you can measure the exact amounts – without proof, you won’t be able to claim anything.
Keep your log in a logbook, and make sure you record all the details. In most cases, you’ll need to record the costs of everything and the odometer readings for several weeks.
Mortgage House’s car loans
At Mortgage House, we’re no strangers to personal loans and financial planning. We’ve been doing it a long time.
If you’re thinking of buying a car, contact us for advice about the best options for you when it comes to personal loans. We provide loans to all kinds of people in all kinds of situations, and you can save a lot if you buy your new car around tax time rather than waiting.
The conditions of your loan can drastically affect your financial planning, so it pays to speak to the experts about it. Even if you’re not sure, we’d be happy to chat just to answer your questions.