Hi,
Our PPOR became our Investment Rental Property on 21 Dec 07 and our tenant moved in on 4 Jan 08.
I am just inputing data into our excel spreadsheet for tax time, as we wish to meet with our accountant as soon as humanly possible!
I was just wondering what the go is with claiming trips to our rental property. Can you claim your overnight stay in a motel – property is 3.5 hours away. Can you claim use of own conveyance? And how often can you claim it?
Any insight is greatly appreciated – thank you!
Maree
From the ATO Web Site
Avoid making common mistakes
incorrectly claiming the full cost of an inspection visit when combined with a private purpose, like a holiday. In this case deduction claims can only be made for the portion of travel directly related to the property inspection.
http://www.ato.gov.au/corporate/content.asp?doc=/Content/00146333.htmGenerally you can’t claim rental deductions for private or capital expenses, such as:
- the cost of buying or selling your rental property, like the cost to purchase the property, conveyancing costs and advertising expenses You will need to apportion your expenses if any of the following apply to you:
- your property is available for rent for only part of the year.
http://www.ato.gov.au/corporate/content.asp?doc=/Content/86203.htm
Full guide downloadable
http://www.ato.gov.au/content/downloads/NAT1729_07.pdfthanks so much duckster. Seems there is no limit on trips? We privately manage the property, and have had 3 trips during this period – all justified for contract/key exchange, inspection and maintenace.
Poking around the ATO website is the vehicle rate .69cents a kilometre? It is a 600km round trip.
You may have to check with your accountant on what is a reasonable accommodation expense. For example if the whole family went and the house has only one owner then the ATO would probably question the accommodation for the other 3 people. Also the time you spent in the accommodation has to be reasonable as deemed by the ATO otherwise they will see it as a holiday trip.
For sure Duckster. Only wanting to claim one night in the motel though, the other trips we have done a return trip in the one day. It is all fair and reasonable imho
Hi Maree
This has nothing to do with travel to your investment home. We had a PPOR which later became an investment property. Now we are deciding to sell it. Since it was years ago, I am finding it difficult to estimate how much it was worth from the time it became an investment property. For if we sell, I believe we only pay capital gains on that portion of gains after it became an investment property. So for the future it would be good if you could get a written estimate of your property's price from you REA. This would help if in the future you decide to sell it.
cheers
Maria
(I am not a investment financial or professional advisor and all comments made are of a general nature and may not be relevant to your individual circumstances. Consult a professional adviser for any clarification.)
Wow – great point Maria. I really appreciate you bringing it to my attention – thank you. Defiantely food for thought.
Our property was only PPOR for just over a year. We still have 18 months left on our fixed term contract, so when that expires will change loan to interest only and I am sure there will be another valuation done then. We locked in at 7.1% and looking at rates and figures I am of the opinion we are better off leaving that arrangement be.
Cheers
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