Adrian Brown is a carer who is required to visit various clients at their homes. As part of his employment duties he purchased a vehicle to travel to his various client homes. Adrian did not keep a log book but he kept a diary which showed that he travelled a total of 6,300 kilometres in travel between client homes that related to visiting clients at their various homes during the 2019-20 year of tax. He is not claiming any travel from his home to the first client or from the last client to his home.
During the year Adrian incurred the following expenses (before any adjustment for work use) in relation to his vehicle:
Registration and Insurance $1,400
Petrol $2,500
Servicing the vehicle $600
Interest on the car loan $5,000
Depreciation on the vehicle $6,000
Adrian estimates that his overall work-travel would have been 60% if he had kept a log book. Based on the above information, Adrian's entitlement to a tax deduction for his car expenses for the 2019-20 tax year (rounded to nearest dollar) is;
A) $4,284
B) $3,400
C) $15,500
D) $9,300
Correct Answer:
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