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Edited version of private advice
Authorisation Number: 1051810855889
Date of advice: 1 March 2021
Ruling
Subject: Work related travel expenses
Question
Are you entitled to a deduction for the cost of having your car towed interstate?
Answer
No.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You are a professional.
You obtained a position interstate.
You had your car towed interstate.
You chose to take your car rather than use other forms of transport.
You used the car to go from your accommodation to your workplace 4 days a week and 1 day a week to attend training.
You did not use the car for any other purpose.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
According to section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997), you can deduct a loss or outgoing if it is incurred in producing your assessable income except where the outgoing is of a capital, private or domestic nature.
You chose to have your car towed to where you were working so you could carry out your job as a a professional.
The car was not used to undertake any work duties in relation to your job.
You used the car to travel from your accommodation to the workplace and to and from training, this travel put you in the position to work and the travel was not on work as a professional.
The tow expenses are therefore private in nature and are not deductible under Section 8-1 of the ITAA 1997.
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