What expenses can we as investors get tax deductions for?
I know books like business,investment books, car petrol for site visits, loan interests, etc.What about expenses like
-new fax machine
-mobile ph bill
-etc?Yep. Anything related to the earning of income. Computer, Internet connection (for research etc), study courses, books, street directory, travel to see property or for study or to see accountant etc. Virtually everything!
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Some potential tax deductions include:
Sex Toys – Gifts to beneficiaries of a trust.
Alcohol – As gifts given to staff, customers and business associates. At conclusion of seminars with finger food.
Birthday Presents – Under $100 for all employees.
Bonuses – Given to employees for jobs well done
Books – Work related, Investment related, As gifts or rewards to employees of the business, Motivational.
Christmas Hampers – Under $100 each to employees.
Christmas Presents – For all employees at less than $100 each.
Cleaning Products – Used in business premises.
Clothing – Protective in nature, Registered uniforms.
Crockery – Used in Tea Room of business.
Cutlery – Used in Tea Room of business.
Easter Eggs – For reception area or for all employees.
First Aid – For a safe working environment.
Flowers – Used in reception or waiting room of business, as gifts to employees or business associates.
Furniture – Bought for office & under $300 per item.
Gifts – To employees providing under $100 a time and given infrequently, to business associates or customers.
Gift Vouchers – For all employees at under $100 per time, to business associates or customers.
Greeting Cards – Used as marketing tools within business.
Guard Dog – Costs of owning and maintaining guard dog.
Internet Fees – Where the business uses the Internet for research, communication, advertising, or other business purposes.
Laundry – Cleaning and maintenance of work clothing.
Magazines – Professional, business or investment related. Used in reception, tea room or waiting room.
Marketing – Activities that promote the business.
Movie Tickets – As a small bonus or reward for your employees.
Music – Used in office environment, given as gift to employees or business associates. See the $100 rule.
Newspapers – As per magazines.
Photography – Where photos are used to promote the business, where photos are of work performed.
Political Dues – The first $1,500 is a tax deduction.
Radio’s etc – Used to provide music or training at work.
Secretary’s Day Present – For all secretarial and clerical staff.
Security – To protect business assets.
Seminars – Re business or investment, morale or motivation.
Staff Expenses – Required for a safe & harmonious working environment.
Toys – Used in reception or waiting area of the business.
Wages – To children IF they work within the business.
Have a look at Dale’s site at:
http://www.gatherumgoss.com/business.htmThat’s one of the most innovative site I’ve ever seen, quentin. This Dale must be one hell of a gun accountant. The taxman must love him!!!!!!
quentin is spot on the money, however…
One thing that you must keep in mind when giving excessive gifts to employees is the issue of Fringe Benefits Tax, which is payable by the employer on excessive ‘gifts’ which are possible replacements for salary…
Pete
…Beware of the dreamtakers…
Hi fullout.
Keep in mind that most of these deductions might only be claimable once you have already have investment property. Expenses incurred before purchase may not be claimable!
TerryTerence McMahon
HomeWin
FinanceTerry,
so when do i really own the property? u mean after settlement u mean?
oh no, then since my settlement is on 1st July, does that mean i can claim anything (petrol, phone calls, fax, etc) this financial year???Basically the law states that you can deduct from your assessable income any loss or outgoing..:
– that is incurred in gaining or producing your assessable incomeIt looks like in your case as you have not settled this property this financial year and thus no assessable income has been ‘gained’ therefor no deductions will be allowed…
However all the costs incurred prior to the producing of assessable income may be classed as incidental costs incurred to acquire the CGT asset and will help reduce any CGT payable when you dispose of the asset.
Sorry Mate
Pete
…Beware of the dreamtakers…
hmm,
ok what about things like property and motivation seminars, investing books like Rich Dad PoorDad, motivation books like Anthony Robbins’, homecourses like “The Wrap pack”, which are for my personal development? Can i claim on these even though i dont have the property settled in this financial year?My accountant said even if i have just 1 property, i still cant (or its a bit hard still) to claim on things like Property Seminars, and Property videotapes?
Is that true?This is a tricky one.
However,if you have 1 property, you are more then allowed to claim as much as you want.
You will have more chance claiming richdad then robbins, as there is no direct nexus with robbins motivation and income producing.
…Beware of the dreamtakers…
Willi,
hmm, u mean i can claim as much as i want coz i have just 1 property now? why is that so? Dont investors who have a fleet of property have a better privilege?
mmmm, Who is that accountant on the top who lists out such a long list of things like sex toys and stuff? Is he in Victoria? I would sure like to see him.
Fallout;
That accountants site is
and yes he is in melbourne
Pete
…Beware of the dreamtakers…
May i know who in this forum is using this accountant now>? Do they understand things about Positive Return Properties and Interest Only Loans. IN other words, are they good in property investment and other things like business, etc?
I may want to go and visit this guy.Hi Fullout,
I always like to start at the magazines for information… just to knowledge myself up. My background is far removed from tax etc.. I find the personal investor magazine helpful as it is written for the lay person.
http://www.personalinvestor.com.au/This month has a special on tax with regards to different investing stratergies. It’s basic, but a good place to start.
The ‘useful links’ post has some links that Terryw and willi, AD et al has shared with us.Everyone here has given you excellent advice… I’m going to act on it aswell [
]Cheers
Sooshie []There are no problems, only solutions
fullout,
May i know who in this forum is using this accountant now>? Do they understand things about Positive Return Properties and Interest Only Loans. IN other words, are they good in property investment and other things like business, etc?
I may want to go and visit this guy.
Yes, Dale is my accountant and he’s very, very good. In fact he’s often referred to as Australia’s foremost expert on property investing and has worked with members of BRW’s top 200 (Australia’s wealthiest 200 people) as well as Robert Kiyosaki and others. He also writes regular columns in property investing magazines and hasn’t lost a case with the ATO yet.
I know people in NSW and Queensland who fly to Melbourne and use Dale as their accountant – not hard to do these days with e-mail, fax machines etc.He’s located in Colchester Rd, Kilsyth – go to the link willi posted above to find his contact details. He’s obviously very busy and has just put on another new accountant at his firm.
Have a look at his 2 manuals he sells through his website called “Tax Battles” and “Trust Magic” which are both well worth the tax deductible money.Hi every1,
Is the cost of a Deposit Bond (eg. $408.00 for $34,000 deposit) tax deductible?
Thanks,
NoviceHI Everyone
I’m based in Queensland and can highly recommend Dale to anyone who doesn’t already have a great accountant and I mean GREAT!!!
As has already been pointed out, it doesn’t really matter that he’s in Melbourne when I’m so far away all thanks to the internet and fax machines!!!
Take care
Dave []ps I’m not the only person in Queensland using him
Hi Novice
Could I suggest that you email Dale directly with your question.
I find he is only too happy to help others in this way.
Take care
Dave []HI Everyone
I’m based in Queensland and can highly recommend Dale to anyone who doesn’t already have a great accountant and I mean GREAT!!!
As has already been pointed out, it doesn’t really matter that he’s in Melbourne when I’m so far away all thanks to the internet and fax machines!!!
Take care
Dave []I have my first appointment with Dale GG next monday. I found out that he is quite a busy man so I suggest you get in quick as the word is out on this “gun-accountant”.
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