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New Zealand law explained for everyone

Income Tax Act 2007

Deductions - Motor vehicle expenditure

DE 7: Logbook requirements

You could also call this:

“Rules for keeping a vehicle logbook for business use”

If you use a motor vehicle for business purposes, you need to keep a logbook to show how much you use it for work. You must choose a start date and keep the logbook for at least 90 days in a row. This time should show the normal amount of business travel for your vehicle during the logbook period.

Your logbook needs to include several important details. You must write down when the 90-day test period starts and ends. You also need to record the vehicle’s odometer readings at the beginning and end of this period. For each business trip, you have to note down how far you travelled, the date of the journey, and why you made the trip. The Commissioner might ask for other information too, so be prepared to include that as well.

Remember, the logbook is important because it helps prove how much you use your vehicle for business. Make sure you keep it up to date and accurate.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513869.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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DE 6: Using logbook for test period, or

“Keeping a logbook to calculate business use of your car”

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DE 8: Logbook term, or

“Time period for measuring business use of a vehicle, lasting up to 3 years”

Part D Deductions
Motor vehicle expenditure

DE 7Logbook requirements

  1. When a logbook is used to establish the proportion of business use of a motor vehicle, a person must select a start date, and keep the logbook for at least 90 consecutive days at a time that represents, or is likely to represent, the average proportion of travel by the vehicle for business purposes during the logbook term.

  2. The logbook must record—

  3. the start and end of the 90 day test period; and
    1. the vehicle’s odometer readings at the start and end of the test period; and
      1. the distance of each business journey; and
        1. the date of each business journey; and
          1. the reason for each business journey; and
            1. any other detail that the Commissioner may require.

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