When buying a car in your company or trust there are specific rules that apply:

1. Income - the Fringe benefits tax (FBT) recoupment or "notional income" is declared using one of two methods either the statutory formula or logbook method.  This income is brought to account in the entity in each financial year.
2. Logbook method - there is no need to keep a logbook unless your work-related travel is very high. In most cases, the statutory formula is the easiest and most pragmatic to use.
3. Expenses - in this case, all expenses are claimed in the company or trust.

Here's a frequently asked question (FAQ) from the our list:

Q: Should I buy a car for tax purposes?

A: We always say that buying a car (or anything else) is determined by your business, investment or personal needs.