Vehicle Purchased For Business and Personal
By Marc Sevitz · Updated
I recently purchased a car cash for business and personal use. The amount paid was R103,000. How can I go about claiming a portion thereof as a tax deductible expense if I also use it for my business?
Do you own the business or are you a salaried employee receiving a travel allowance?
I own the business
How do you pay yourself?
I am a sole proprietor and pay myself from my business account. Generally, what the business makes, that is what I pay myself.
As a sole proprietor you would be able to deduct the use of the car for business purposes in the ratio of business to total use. Did you keep a logbook? If so you would use that ratio to determine the deduction of the vehicle related expenses and the same for the car which you would divide the value by 5 and then use the apportionment as per the logbook.