Re:Don’t pay for 95% (2016)
by adrianN on Tuesday October 13, 2020 @03:41AM
(#24763214)
In Germany you can tax deduct 35-40 Eurocents/km for you commute. That's reasonably close to the Australian number. The AAA also estimates similar numbers: https://exchange.aaa.com/wp-content/uploads/2019/09/AAA-Your...
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Just ran the numbers for my 10 year old Honda and my 15,000 km per year.
Accounting for depreciation, interest, insurance, actual service bills and petrol, I ended up with A$0.25 per km and A$4150 per annum, so ATO-sanctioned business travel compensation always rightfully seemed to be a handout to me.
A new BMW can easily cost 6x as much, hence "average body temperature".
In the US, business auto deduction is around 52 cents per mile.
An oldish paid-off relatively inexpensive car will absolutely do better than that on average. But it's actually not unreasonable that the business deduction bases costs on something like a late model leased midrange sedan like a sales rep might use to drive clients around.