All Topics / Help Needed! / Help! Accountant just informed us we can’t claim trip to inspect rental property without a diary

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  • Profile photo of AnrobelAnrobel
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    @anrobel
    Join Date: 2007
    Post Count: 33

    Hi Everyone
    Our accountant has just informed us that we can't claim a trip to Cairns from Perth, last year to inspect our rental property. The trip was for 5 days (I thought i read somewhere that you don't need to keep a diary for a trip of 5 days or less?) we hadn't seen the property for 3 years and it was in need of a fair bit of work so we though we had better have a look at it. We did take one day off to go diving but other than that we were checking out hardware stores, talking to tradies, seeing other rental agencies because we weren't happy with the service from ours etc. I was under the impression that if the purpose of the trip was to inspect the property and we took one day off for personal interests then we could claim four fifths of the expenses. Can anyone help with this one please???

    Profile photo of blogsblogs
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    @blogs
    Join Date: 2005
    Post Count: 418
    Anrobel wrote:
    Hi Everyone
    Our accountant has just informed us that we can't claim a trip to Cairns from Perth, last year to inspect our rental property. The trip was for 5 days (I thought i read somewhere that you don't need to keep a diary for a trip of 5 days or less?) we hadn't seen the property for 3 years and it was in need of a fair bit of work so we though we had better have a look at it. We did take one day off to go diving but other than that we were checking out hardware stores, talking to tradies, seeing other rental agencies because we weren't happy with the service from ours etc. I was under the impression that if the purpose of the trip was to inspect the property and we took one day off for personal interests then we could claim four fifths of the expenses. Can anyone help with this one please???

    Gee I dunno-I would have thought a professionally qualified accountant would have a good idea. If in doubt why dont you query another accountant for a second opinion?

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Well, start recreating your diary:
    Date/Time  Taxi to airport incl invoices

    Date/Time  Flight No. including invoices
    Date/Time  Hire Car Pick-up incl booking slip & number

    Date/Time  Arrive Accommodation
    Date/Time  Drive to unit
    Date/Time  Inspect Premises
    Date/Time  Phone Calls to tradies
    Date/Time  Visit to Trade suppliers
    Date/Time  Visit to Council

    Date/Time  Back to Airport
    Date/Time  Pay Hire Car
    Date/Time  Flight No. etc
    Date/Time  Taxi home

    Profile photo of AnrobelAnrobel
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    @anrobel
    Join Date: 2007
    Post Count: 33

    Thanks Scott No Mates – will have to, I'm not real popular at home at the mo 'cause i managed to misplace the folder with all of our reciepts in it! I will see what i can come up with otherwise i might have to chalk it up to lesson learnt!

    Profile photo of blogsblogs
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    @blogs
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    Anrobel wrote:
    Thanks Scott No Mates – will have to, I'm not real popular at home at the mo 'cause i managed to misplace the folder with all of our reciepts in it! I will see what i can come up with otherwise i might have to chalk it up to lesson learnt!

    Whats the point of going to the trouble of finding receipts and doing a dodgy diary if the accountant has said you cant claim? Or is the only reason you cant claim becasue you dont have a diary?

    Profile photo of AnrobelAnrobel
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    @anrobel
    Join Date: 2007
    Post Count: 33

    Yeah can't claim without a diary apparently. Some accountants seem a little more by the book than others – but better than being audited and caught out i guess

    Profile photo of L.A AussieL.A Aussie
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    @l.a-aussie
    Join Date: 2006
    Post Count: 1,488

    You can claim without the diary; just hope you don't get audited.

    Just give him the correct figures and tell him to do it.

    He gets you to sign a bloody waiver anyway; what does he care?

    Profile photo of AnrobelAnrobel
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    @anrobel
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    Post Count: 33

    Cool thanks Marc –  Takes the pressure off having to sort it straight away – I'm away at work now and going away on holiday when i get back into town. We gave him all of our paper work in August and this is the first we have heard of needing a diary!

    Profile photo of v8ghiav8ghia
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    @v8ghia
    Join Date: 2005
    Post Count: 871

    Hi Anrobel,
    Visit the ATo website – everything you need is there. I suggest the NAT1729 Rental properties guide (se page 9) and also ther is plenty of other help, rulings, and info on repairs, what is and is not deductable etc. I think you will get a pleasant surprise. All the best.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    I would not rely on your accountant or you could be paying a lot more tax than you should. Go to the ATO site and get those booklets v8ghia mentioned, then look up the Tax Rulings mentioned in the relevant section. Shouldn't take too long to find and you will be educating yourself on the way.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of AnrobelAnrobel
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    @anrobel
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