Question:  f I put a work sticker on my car, can I deduct 100% of my car expenses?

Answer: Simply – no. Deductions are based on four different methods. The methods are:

  • Cents per kilometre (limited to 5,000 business kms per year)
  • 12% of original value (this can be used if you travelled more than 5,000 business kms per year)
  • One-third of actual expenses (this can be used if you travelled more than 5,000 business kms per year)
  •  Logbook method (this requires a logbook to be kept over a continuous 12 week period; the logbook can last for five years as long as it still represents continued use of the car).

Whether the car is heavily branded with work logos or not, the deduction only applies to kilometres travelled for business. Travel from home to work or work to home are not deductible. Attending meetings, running business errands and the like are deductible.

Keep a log book

If you use your car extensively for work in terms of kilometres travelled, keep a log book. Your log book should track:

  • Date
  • Time
  • Kilometres travelled
  • Purpose of travel, e.g. [project name] –
  • – site visit / presentation / workshop