Section DE 12 — Income Tax Act 2007: Mileage rate method

DE 12 Mileage rate method Using mileage rates (1) If a person’s business travel is 5,000 kilometres or less in an income year, they may use the mileage rate method to calculate the expenditure or loss on a motor vehicle that represents the proportion of business use of the vehicle. Amount of deduction (2) Under the mileage rate method, the person must keep details of the business use of the motor vehicle and calculate the mileage travelled for business purposes for the income year. The amount of the deduction under this method is found by multiplying the mileage rate by the distance that reflects the proportion of business use of the vehicle for the income year. Setting mileage rates (3) For the purposes of this section, the Commissioner must from time to time set and publish a mileage rate. Defined in this Act: amount , business , business use , Commissioner , deduction , income year , motor vehicle , Compare: 2004 No 35 s DE 12