Are there any tax benefits when you are paying off a bond, car or any property? Does that affect the person who is paying the loan or the person receiving payment, or both? As far as disclosing this on the tax return as a deduction or otherwise.
Do you use your car for business travel? Do you work from your property? Whether or not you can get a tax benefit from these repayments depends on what purpose you use these assets for (i.e. personal or business).
SBOsays: 12 August 2015 at 7:50
I do not use the car for business and the loan is just for my bond not for business either. If I were using my car for business will I benefit on car installment even if I get an allowance?
TaxTimsays: 12 August 2015 at 11:17
You cannot claim a tax benefit for your property or car because they are used for personal use.
If you receive a travel allowance from your employer, 80% of this allowance will be included in your taxable income. You can then claim a deduction against this allowance for your car instalments and therefore reduce the tax payable on this allowance. You need to keep a logbook though to justify all your business kms travelled. Note that only the portion of the lease payment that relates to business use can be deducted so you will need to apportion accordingly.
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