Tax deductions on IP

[DAAJ]

Hi everyone,

Can someone explain to me how many IP's you would need to be classed as having a home buisness so you could claim expenses such as internet,stationary ,phone calls,fax, room,power ,time or labour . Or does this not apply to property investors unless you register a buisness.
Thanks Dom :cool:

[Aceyducey]

Daaj,

Investing is NOT a home business :)

However. the correct answer is none....provided it becomes one soon after you start looking.

However you can only claim certain things personally. You need to use appropriate structures to get certain deductions - and generally this doesn't mean using a company.

Find a good accountant to explain the ins & outs for you & the structures you need to use to claim such expenses.

Cheers,

Aceyducey

[duncan_m]

Hi everyone,

Can someone explain to me how many IP's you would need to be classed as having a home buisness so you could claim expenses such as internet,stationary ,phone calls,fax, room,power ,time or labour . Or does this not apply to property investors unless you register a buisness.
Thanks Dom :cool:


DAAJ,

Most of the things you mentioned, you can claim with just 1 IP, no problem.

You cant claim your own labour, but in certain circumstances you can claim paying your spouse for book-keeping and the like.

If some of the things like Internet Access are used by you personally as well you need to be able to account for how you arrived at the proportion for the Property and your personal proportion.. a log book would be wise.

Certainly when your holdings grow to grander proportions then claiming a portion of the floorspace for your business becomes possible, then a portion of your home's rates, insurance, interest on the loan, maintenance etc can be claimed, the downside being that you lose an equal portion of the CGT exemption that your PPOR currently enjoys.

With no IP's and an INTENTION just to buy one, none of those costs would be claimable as deductions.. they could potentially go onto your cost base for CGT later though.

[DAAJ]

Thanks for your information much appreciated.
Dom ;)