You are required to calculate the two methods available for the car expense/deduction.
- Assuming the car has full records, including a valid log book.
- The set rate method uses 66 cents per kilometre.
- The Holden is not above the cost limit, currently $57,581.
- It is used for both private & business kilometres, with the estimated business percentage - being 28%. He travelled total kilometres during the year of 28,100.
- When calculating depreciation he uses the diminishing value method (8 year eff. Life); so its 1st July 2021 adjustable value (WDV) is $12,469. Tip: Dep formulae - WDV*(200/Effective life)%

 

Substantiated expenses are:

Date	Item	$
various	Petrol & oil	2,852
Jan 1	Insurance and registration	1,690
3 Mar	Speeding fines	360
15 Mar	Parking tickets (infringements)	462
various	Parking fees (all business trips)	145
31 Aug	Driver's license (normal car)	160
various	Loan (interest $1,290)	3,100
2 Nov	RACV membership	90
30 Dec	Tinting windows	684
various	Washes	280

Note:

- The cents per kilometre should be on actual kilometres done by the car for business purposes. 

- The depreciation allowed will be for the prop of business use.

- What is the final deduction allowed?

- You are professional agent so should be advising Peachy