I have paid off/settled my car 4 years in advance that I use for business and private purposes. So far I've kept track of km for each and apply that percentage to my monthly installment as business expence. But how to go now about with the settled amount paid? What percentage must I use to allocate for tax purposes?
How are you currently claiming your business mileage for tax purposes?
Anonsays: 6 January 2015 at 9:16
I keep daily track of mileage for business and private, then month end I calculate how much I did for both, and the business percentage for mileage I apply to my car expense for petrol and monthly installment. But now the vehicle is paid off. Can I use a certain amount of that amount used to pay off the car to claim as business tax as I'm still using the car for both business and private? And how do I continue claiming for tax afterwards?
TaxTimsays: 8 January 2015 at 9:14
If you travel less than 8000km then you can use the official SARS rate per km which will include the value of your vehicle as well. Otherwise you can depreciate your car over 5 years at the value it was worth when you settled it. Use that as a basis to apportion between business and private use.
Anonsays: 11 January 2015 at 21:04
Thank you,but how to go about with the amount I used to settle the car - i.e can I apply a certain amount for business tax? Or does that settled amount not apply if I depreciate the car every year then? You're a great help,many thanx
TaxTimsays: 12 January 2015 at 7:58
The settled amount does not change the value of the car, for wear and tear this is based on the actual value of the car and is written off over 5 years. You cannot unfortunately deduct the actual cost of the car in one year.
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