Having an IP, I can claim numerous expenses as a tax deduction, since they relate to the ongoing running costs of the IP.
But can I also claim for lesser things like investment magazines and copies of Steve McKnight's book (I bought two!)?
And this leads me to ask; can I also claim for things like investment seminars etc?Cheers,
Hugh.hmcleay wrote:
But can I also claim for lesser things like investment magazines and copies of Steve McKnight's book (I bought two!)?
And this leads me to ask; can I also claim for things like investment seminars etc?
Sure can. Well I know I have been
Make sure you grab an invoice/receipt from the seminars.Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi all – how about travel expenses to 1) source new properties, and/or 2) provide ongoing management of property
Are these deductible against rental income?
Cheers Rich
You can definitely claim the travel to and from a property you own for maintenance, not sure about travel to inspect a propective purchase.
As Luke said, you can claim for travel to and from a property you own, but you can't claim for travel to a property you might buy in the future.
Thanks Dan and Luke – I own a number of IP's in the UK and just moved to Oz so wondering about claiming 1 trip per year back to the UK to perform annual maintenance/inspections on the properties I own plus buy an additional one or two properties each trip…….I guess I can deduct against the properties I already have which means I still get the deduction.
rich_99 wrote:Thanks Dan and Luke – I own a number of IP's in the UK and just moved to Oz so wondering about claiming 1 trip per year back to the UK to perform annual maintenance/inspections on the properties I own plus buy an additional one or two properties each trip…….I guess I can deduct against the properties I already have which means I still get the deduction.However you must only go for the purpose of property inspection/maintaince to claim Travel expenses, no holidays allowed
http://www.ato.gov.au/individuals/content.asp?doc=/content/00205421.htm&page=7&H7
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If the main purpose of the trip is a holiday, you can’t claim the cost of getting there – you can only claim local expenses directly related to inspecting the property, such as taxi fares and part of your accommodation expenses.
If we select your travel expense claim for review or audit, you must be able to show your reason for visiting the rental property.
The records you keep, such as invoices for your accommodation or airline tickets, will help you do this. If you spend six or more nights away from where you live, you must keep a travel diary or similar document that shows the dates, places, times and duration of your activities and travel.
Im pretty confident you cant claim the cost of seminars unless the ATO considers you to be 'in business' in relation to your rental properties.
http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/14120.htm
http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/52466.htm
Also your not able to can claim books/magazines based on this
http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/76764.htmRen10 wrote:Im pretty confident you cant claim the cost of seminars unless the ATO considers you to be 'in business' in relation to your rental properties.http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/14120.htmhttp://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/52466.htm
Also your not able to can claim books/magazines based on this
http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/76764.htmWhen in doubt, ask your accountant. There the ones with the expert knowledge in the area. My accountant has no issue with me claiming magazines/books – the private ruling also suggests that to be the case (it seems that this person doesn’t own any IPs at present and is wanting to purchase books for educational purposed before purchasing the asset).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Sorry to raid the thread, but can you claim the cost of replacing a fridge in a rental?
I assume this is expense in nature (rather than capital) because you are replacing something that was there before that did exactly the same job and doesn’t add value to the property.
I am guessing that this fridge is included as a part of your rental property!!
You need to confirm with your accountant (I am not qualified to give advice- insert disclaimer here) but I believe this is how it works:
- Your old fridge would have a paper value (say $400). The old fridge is now not fit for use and so is now worthless (worth $0). Hence, you put the old fridge on the tip and claim the $400 loss as a one off deduction on your current years tax return.
- Your new fridge can be depreciated over time over whatever life the ATO has decided applies to fridges (or whatever life span you can justify to the ATO).
cheers,
LukeThanks Luke86,
yes, the fridge is included. The house is my PPOR but I have decided to move out and rent the rooms for a while. I left my fridge there. The fridge was given to me so I don’t have records of the original cost.
No problems about not having a record of the original cost- if you know the approximate ago, size etc you (or your accountant) can make a reasonable approximation of the value and base the deductions on that.
Cheers,
Lukeluke86 wrote:No problems about not having a record of the original cost- if you know the approximate ago, size etc you (or your accountant) can make a reasonable approximation of the value and base the deductions on that.Cheers,
LukeSorry about the typo- I meant if you know the approximate age, not approximate ago.
Serves me right for not proof reading before hitting "post"!!
I think you are right luke. According to http://www.ato.gov.au/corporate/content.asp?doc=/content/00244448.htm the fridge is not instantly deductable.
Cheers,
Dan
Nice link Dan. It actually says refrigerator in the list of items that need to be depreciated over a number of years!!
Ren10 wrote:Im pretty confident you cant claim the cost of seminars unless the ATO considers you to be 'in business' in relation to your rental properties.http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/14120.htmhttp://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/52466.htm
Also your not able to can claim books/magazines based on this
http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/76764.htmYou can claim them if they relate to helping you run your property. So not one on where to buy but yes to ones on increasing yield etc.
rich_99 wrote:1) source new properties,2) provide ongoing management of property
Are these deductible against rental income?
1. Capital cost used to offset any CGT liabilities.
2. Deductible – but questions may be asked if you claim a truck load of travel expenses and have a property manager.
wafti123 wrote:can you claim the cost of replacing a fridge in a rental?Any residual value of the 'old' fridge can be claimed against income.
The new fridge becomes depreciable according to the relevant section of the ATOs depreciation schedules.
Make sure you grab an invoice/receipt from the seminars.
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