Claiming a deduction for transport expenses when carrying bulky equipment

As a general rule, expenses relating to travel between home and work (and vice versa) are non-deductible. A number of exceptions to this principle exist, including for situations that require bulky equipment be transported to and from work. In order for transport expenses to be deductible under this “bulky equipment” exception, it is usually necessary that all of the following conditions are satisfied. The taxpayer will also need to substantiate the expenses by keeping appropriate records of the travel, such as the time, dates, distance, etc.

Criteria to be satisfied

  1. You have bulky equipment that is necessary for you to earn your income (eg saws, electrical cords, toolbox and the like for carpenters).
  2. The equipment’s bulkiness is such that there is no other practicable way of taking it to where you earn your income other than by your private motor vehicle.
  3. The travel expenses are necessitated by the need to carry the bulky equipment to the place where income is earned (rather than your choice to travel by motor vehicle).
  4. No secure area is provided for keeping the bulky tools safe at the place of work. If you choose to carry the bulky equipment with you despite safe keeping at the worksite being available, no deduction will be allowable.
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