Jerome operates a clothing store. During the 2021/22 tax year, Jerome used his Mazda for an estimated 9,000 km of business related travel.

 

Jerome had kept a logbook for this vehicle during the 2015/16 tax year (the year in which he had bought the vehicle for $21,750).

 

This logbook disclosed business use of 59%. Neither Jerome's business nor his travel pattern has changed significantly since then.

 

His running costs for the year including decline in value amounted to $6,1OO. All expenses can be fully substantiated.

 

Calculate the deduction available to Jerome for car expenses using each of the methods available to him under Division 28.