Are seminars deductable

[Miss V]

I am fairly new at the investing game. I have 1 ppr and 1 investment unit so far. I think self education by books and seminars (and forums!) is all part of the investment game, but does the tax man see it the same way?

Specifically I would like to attend the Reno Kings seminar, and then buy appropriate properties using the information I learn.

This will be my first tax return as a property investor this year. Any tips?

V

[Aceyducey]

You bet!

Seminars & books are educational expenses.

Also depending on how you are set up you can claim % of phone calls, electricity, rental, internet usage, mobile phone, PC depreciation.

Best is to have a home office set-up, but speak to an accountant & you have probably a lot to claims.

Also don't forget depreciation of fixtures at your IP & interest on investment debt!

Cheers,

Aceyducey

[Miss V]

Thanks Aceyducey,

All the investment unit side of things is taken care of but I was a bit unsure of the home office stuff. I'm definately going for a percentage of the computer, the internet usage, all software, etc. All I need now is a good accountant!

Cheers

[geoffw]

Hi,

I'd just be a little careful about seminars- or even books.

In my most recent tax return, my accountant told me that previously, anything related to investment he deducted automatically. But this time, he quizzed me on the content of some of the books.

The resonaing was that books or seminars which related to something I was already doing were deductible. But if it was to learn something new, it would not be.

So that if I already renovated to let out for a higher value, the reno seminar would be OK. But if I did the seminar before I had ever lifted a paintbrush on an IP, it would not be deductible- on the same premise that a course to learn a new profession is not deductible.

I got the impression that this was not set in concrete, but was the way the ATO was heading- especially considering the amount of money which has been claimed on expensive seminars in recent years.

[dtraeger2k]

Geoffw: Forgive me for not seeing any logic in that. Education is tax deductible, but learning new things isn't?

[Mike]

I can't find anything on the ATO website specifically related to the deductibility of so-called wealth creation seminars but the following article suggests the ATO are looking into the matter. The article mainly focuses on the deductibility of financial advisers fees but if the ATO wants to exempt some financial advisers fees in respect of drawing up a financial plan then the same thinking will apply to investment seminars.

Why not make fees for advice tax deductible? - May 9, 2003
http://www.moneymanagement.com.au/articles/fa/0c010cfa.asp

Mike

[DaleGG]

HI

If the amounts are small and reasonable, the tax office have shown little interest in them. It is the larger amounts being charged by the HK's and others that create the problems for the tax office.

As a rule, if you own investments then attending seminars that relate to earning your existing income will be tax deductible. If you do not already own investments that create an income, then, attaending a seminar that might teach you something to produce an income into the future will not be tax deductible.

There is no formal ATO position on this issue, but, the tax office have flagged it as one they are watching.

Dale

[natmarie73]

i guess it is the same as for normal education expenses in the way that if I am working as an accounts clerk and am studying accounting at uni I can claim (a portion) of the expenses for that course but if I were working as a mechanic and studying accounting I couldn't - same principal applies I would suppose.

Nat:)