Me and my wife are going on a short 3 night holiday to the Gold Coast in Sep08 and I'm wondering how much of the trip cost I can claim as a tax deduction if I go and visit my investment property which is an hour North from the Gold Coast by car.
We live in Sydney.
Many thanks
Nickif I was doing it I would claim what was actually required to inspect the property …its really a day trip….. airport taxi (or mileage and one day parking) airfare and one day car rental (one airfare if the property is in one name, both if its in both). Just my opinion based on my own comfort level with explaining how I arrived at the expense claim to an ATO auditor. I am sure others would be more creative.
From memory the ATO website has some fairly detailed advice on the issue.
I also recollect from some recent PR that it is one of the things they will be looking at pretty closely this cycle.
The ATO looks closely at these claims.
Brisbane is an hour's drive north of the Gold Coast. Hard to see you claiming much if you travel from Sydney to the Gold Coast for 3 days when your IP is in Brisbane. Probably you could claim the cost of a hire car for a day to travel to see your IP.
Our accountant told us that the ATO looks at interstate travel to inspect an IP as usually considered a direct flight to the nearest city and one night's accommodation. Tack on a holiday and they consider the prime purpose of the trip is a holiday and attracts minimal deductions.
Check with your accountant.
Marg
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