What Are The Requirements of A Valid Logbook of Your Car?
The car log book plays a vital role in tax substantiation, and thus, should be maintained appropriately. There are two common instances where you have to provide evidence of a periodic log book service and these are:
- When you are planning to sell the car and aspire to get maximum resale value by providing evidence related to its present condition, performance, and periodic maintenance
- To get tax related exemptions associated with the work-related vehicles using the logbook method.
The Importance of A Log Book
Many governmental organisations have taken over the registry database programs to evaluate tax compliance of business and individuals who are involved in selling and buying of the vehicles. With this, they aim to know more about the quality and condition of such cars whether they are maintained as per the stipulated parameters or not.
The log book of those cars that have not undergone the mentioned series of services is said to be invalid. This is the reason, why every car owner has to perform proper and periodic maintenance check mentioned in the car log book service. Some of the important aspects that must be included are:
- The number of kilometres travelled by car
- The date at which the log book period begins and ends
- The odometer reading of the car and
- The present condition of various components.
On an average, a log book has to be maintained for a period of 12 weeks and this remains valid for 5 years. The same can be used for both i.e. deduction of tax or reselling the car.
How To Manage Log Book of Multiple Cars?
When you have more than one car then you have to ensure that the log book of each car is maintained simultaneously, especially if they are involved in the same business percentage. This is because the period you choose for maintaining the log book should indicate the usage of multiple cars. In terms of the distance it has travelled, odometer readings, and the present condition in order to have a detailed record of the same.
The first year is the point where you should create the log book and maintain it for at least 12 continuous weeks. This 12-week period must represent how much the car has travelled throughout the year. If you are using the car for business purpose for less than 12-weeks then, you can continue maintaining it, until the stipulated period has arrived. Therefore, it can cover you in the next income year.
What if You Change The Car In Between 5 Years?
A log book will not stand valid if you change the car in-between five years. This is because it comprises of the information related to your old car, so if you claim your tax or sell another car using the old log book, then it would be of no use. In such cases, you should consider maintaining a new one using log book service which would consist of the information i.e. car name, model number, distance travelled, and maintenance check of the present car. Once again, this will remain for a period of 5 years and can be renewed thereafter.
Why Use The Log Book Method For Your Car?
The log book service method is perhaps the best option for your car as with the help of this you can
- Track the number of kilometres the car and the various expenses involved in its maintenance
- Have evidence about fuel costs, odometer readings, and other estimates and
- Ensure that the car is maintained appropriately.
Hence, car log book service is of a great use for the car owners and they must maintain it properly.