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Q: My company provides a car allowance of RM1,200 per month to me because I am using my personal car for official duties. This allowance is declared in my Form EA as a taxable income. If I incur expenses to repair my car, can I claim tax deduction?
A: No, if you are an employee, you cannot claim car repair expenses as a deduction. Even though the car allowance is taxable and included in your Form EA, expenses such as car repairs are considered personal expenses and are not allowed for tax deductions.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru