before i do explain, what can be claimed, dont have a go at me please (for everyone, please read, even if you still are not satisfied, print this and take it to your accountant).
This is what has been ruled and are legally allowed to be claimed and deducted.
Cheers,
sisThe normal/common deductions include the following:
* advertising for tenants
* bank fees
* body corporation fees
* borrowing cost
* cleaning
* council rates
* depreciation and special building write offs
* electricity connections
* gardening and lawn mowing
* insurance
* interest paid
* land tax
* legal expenses
* pest control
* postage
* stationery
* telephone
* property management expense
* repairs
* secretarial & bookkeeping fees
* secuirty
* travel
* water rates
* internetThis is just a small list, and the list is going to get bigger as your about to hear about some unusal dedcutions.
this is sourced from Dales Gatherum-Goss book “Tax Battles”
Cheers,
sisHere are other ones, that most people dont know and there are even further more which are not listed.
though you will be surprised how many possible deductions there are.
* alcohol
* birthday presents
* bonuses
* books
* christmas hampers
* christmas presents
* cleaning products
* clothing
* commission
* crockery
* cutlery
* dining at Cafes/ restuarants
* donations
* easter eggs
* first aid
* financial planning advice
* flowers
* food
* furniture
* gifts
* gift vouchers
* greeting cards
* guard dog
* home office expenses
* insurance
* interest
* internet fees
* legal fees
* library
* marketing
* magazines
* movie tickets
* motor car
* music
* newspapers
* parking
* petty cash
* photography
* pictures and prints
* plant hire
* politcal dues
* professional development courses
* radios’ etc
* relocation expenses
* replacements
* secretary day present
* security
* seminars
* sex toys
* software
* spare parts
* staff expenses
* storage
* subscriptions
* toys
* travel
* travel allowances
* utilities
* wagesAlrigtie that was just a small list, so if others and myself are going to our accountant and claiming these, and doing it in a proper but in a correct manner.
How am i ripping off the system, i have enough evidence and i am able to justifiy my actions and reasons for these deductibilites and expenses.
Cheers,
sisWell I must say, for me (a newbie), this has been a fascinating discussion and thanks to everyone for opening my eyes a little wider.
One question: how on earth do you claim alcohol as a tax deduction?? What’s the next logical step? Hookers? [?]
Dave
there are so many things you can claim, and this is a really small list to what you are able to claim,
further more you can claim, televisions, cable tv and even many other things, that havent been listed but will even surprise you more.
Cheers,
sisSIS, I’m surprised that you even need to list these deductions or explain how you minimise tax. This is simply how it works. Why on earth would anyone invest in property and not claim everything they are entitled to?
Yes, if I have a property in another state, I am entitled to visit that property to inspect it, and therefore claim this with the ATO. If I choose to take a holiday while I’m there, that’s my business. There are rules to what I can claim and what I can’t.
Perhaps some people out there have accountants who are not completely familiar with all the tax deductions available to people with IPs.
I had an interesting debate with my accountant regarding our self managed super fund. He did not want to allow me to claim for my attendance at an options trading seminar held on Hamilton Island. I insisted this was a legitimate educational expense. If this seminar was held, say at the Travelodge at Parramatta, I doubt he would have had any problem claiming it, however since it was at Hamilton Island, he just couldn’t accept it. I requested he get a private ruling from the ATO, and, surprise, surprise, it was accepted.
I just can’t believe that some investors don’t seem to want to claim what they’re entitled to.
Anyway, SIS, keep up the good work.
Cheers,
Karen[
]Thats all well and good claim for your easter eggs and screw the govt. for every cent you can legally get but dont get defensive when someone questions your morals when it comes to your responsibilities in regard to what some believe is rorting your HECS obligations.
Yes everyone has rights but we also have responsibilities.
BC
Hi
I agree with minimising your tax but the fallacy that you can buy a property in an area you want to take a holiday then use it as a tax deduction is wrong. If you go on holidays for 14 days and look at your property for 1 day you can only claim 1 day or if the purpose of going there is for a holiday you cant claim any.
Also remember that the way we have schools , roads ,hospitals etc is because of our taxes if every one pays their fair share maybe these things wouldnt run out of money.First of all – GOOD ONYA S.I.S!
I have been in business for the past 4 years, and have recently started (4mths ago) a new job full time in Sydney. Its true that you can claim just about anything (with a good accountant). Sex toys and alcohol? hrmm never got told about that one! – I have a few receipts I should give to my accountant this year! haha
Anyways, for all of you who are upset or annoyed at the way S.I.S has set himself up, you should speak to your accountant. A good accountant is worth his weight in gold (this will usually be reflected by what they charge you as well!) They are paid to give you ADVICE on how to MINIMISE tax. This, you are entitled to do LEGALLY. Why pay a dollar more in tax than you need to?
My olny problem was trying to get more finance as a self employed business owner. My “on paper” income was so small I could never get finance. Hence me now in a full time, well paid salary job.
Do your research guys- S.I.S obviously has. Besides, its true… if you can get these legal tax benefits it will help you build your portfolio which will (hopefully) provide you with more income long term. More income = more tax to the ATO.
Besides, as Property Investors we are housing many many people so the government love us
*we think*[
]One more point, do you really think S.I.S would be doing things this way if it were illegal or if he knew he would get “caught” if he were to be audited? I very much doubt it…
Thats my bit anyways [:o)]
Good topic. Love it!
Luke [^]
Fabulous stuff.
But, SIS, why do you insist
Hi BC,
I have no problems in paying for my HECs debt, but why should i have to pay for it now, if i can defer it, the longer i can defer it, the more, i can utlise the cash now, and be able to pay for it, in a later date, Or when i feel comfortable in paying for it. As for the moment, im happy to defer it as long as possible or pay the minimal, and no more till the next payment is due.
Cheers,
sisCheers,
sison saying in three posts
what you could say in one?
Stars?
BC
Hi All,
I know with trust structure this is all possible to use as deductions with concrete reasons. But every one got different circumstance so one should check with good accountant about all this. (Good accountant should be really good one).About SIS explanation about all this I feel he is not able to explain very clearly what he is trying to explain. And I can understand it’s not all easy to make some one understand all this in few posts. That’s why many of us pay around $2k to our accountant so he will do all the work and we concentrate on our investing.
Every one think differently for tax saving and HESC. One thing I am asking to my self since reading this post, If we all stop paying tax and minimise as much as we can, and want lower interest also, and want other things also to make us happy/rich. How govt going to run country?[?][?]
Cheers
[]
PropertyGuRu
I want to be billionaire! [] how the hell can people claim sex toys? Surely you’d only be able to if you were an adult performer of some sort… just *cough* curious… [?]
cheers
ra sex toy can be a gift, to either your relationship manager, accountant, solicitor, PM or even your tenant.
Cheers,
sisI know I said I would not participate further but I feel I really must point out to others (not SIS as he just doesnt get it) that all expenses including every last one of the above two lists that SIS has posted are only allowed as expenses if they have been directly incurred as a result of endeavouring to generate income from the investment. In other words, you cannot claim alcohol while inspecting your IP (on holidays) if you are just having a meal with your family. It will only be allowed if you have a valid reason for needing to incur the expense and the expense was reasonable (cannot claim $100 for drinks at a 30 minute meeting with the RE agent). Furthermore, if you argue that if you did not spend the money on alcohol (or whatever the item is) then it would have prevented you from earning the revenue, then the ATO might allow it. Another example is TV. If you can make a case that if your IP did not have a TV it would not be rented out then they might allow it, but will also only allow the depreciation on the TV in a similar manner to non-fixed items (cannot be removed) like dishwashers etc.
Dont get the wrong idea from the list SIS has posted that all the above expenses are all claimable because most of them will actually be disallowed by the ATO unless you have a very good reason and most people do not.
Now I can get out of here I hope!
PS – Kay, I also apprecaite you alternative views in these forums and in no way was upset by your questions.
It could have something to do with peoples belief they are being screwed [
]BC
I think u will find u can claim anything u like, and in fact get away with it, till one day u get a knock at the door for an audit. Then u have to do some very fast explaining. Maybe then it wont be so readily accepted and u could find yourself paying back a huge debt. IS this correct? Any accountants wish to comment?
Regards Bear
]
*we think*
]
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