1)Can i claim travel expenses to/from a property for going to view it,if later purchase it? (Eg; i go to view an interstate property,think about it for a week,then purchase it).
I figure b/c it was prior to the purchs,prob’ly not,but maybe there is a way?? (as the cost is considerable)
2)Then,after purchase,what expenses can i claim for future visits to this property??How often is a “reasonable/accepatable” amount of times to be going to the prop. that can be claimed?Would once a month be too much?
3)Can i claim hire car,gas,accom,food,entertainm while away “doing business”? (eg; maintenace,etc)
4)What are good enough reasons others have used to visit long distance i.p’s?(that are claimable)
Kind regards.Hi Misty,
A) This trip is considered a capital expense and will be used to offset any capital gains you may incur on this property. It is not a deductible expense.
Any subsequent genuine trip to undergo maintenance or inspections would be fully deductible. Be aware that an inspection necessitates more than just a ‘drive by’.You are also able to claim similar expenses in respect of attendance at body corporate meetings (if appropriate).
Under these circumstances you can claim travel costs (hire car, per km rate, airfare, train etc) for your mode of transport, accommodation and meals.
All costs are on a proportional basis when combined with a’holiday’ – you cannot claim teh duration of the holiday.
I would contend that if you are employing a property manager to undertake the management of your property then the number of claimable trips would be fewer than if you are self-managing. I would also contend that there is probably no absolute answer to the question provided you have genuine reasons for visiting.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
I am not an accountant, but would agee with Derek above, but you may be able to claim a trip to inspect a property if you are a professional investor-eg you already have a few properties. Or investing thru a trust may help in this regard.
Terryw
Discover Home Loans
North Sydney
[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
Any subsequent genuine trip to undergo maintenance or inspections would be fully deductible. Be aware that an inspection necessitates more than just a ‘drive by’.
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