Claim - travel cost IP tax time

[tester]

I am currently in the process of building Investment property. While the building work in progress I have been visiting the construction site very often to deliver item or just to monitor.

Can I claim the travEL related cost like petrol cost on car etc. if I can please advise how do I do that calculation.

 

[bbmick]

I am currently in the process of building Investment property. While the building work in progress I have been visiting the construction site very often to deliver item or just to monitor.

Can I claim the travEL related cost like petrol cost on car etc. if I can please advise how do I do that calculation.

I would doubt you could claim as an expense in the usual manner.
I've always been of the belief that anything (excepting the interest) done at this stage would be "capitalised", but maybe someone else will know more fully.

 

[Terry_w]

Keep records, you may be able to claim it when you sell the property.

 

[Tom Alaka]

Wasnt there a case where a chap could claim deductions based on intended future use to build an IP for rent?

edit - found a relevant thread - http://somersoft.com/forums/showthread.php?t=49433&highlight=block+land+deduction

 

[GaryT]

Travel re Purchase and Signing of Contract to Buy or travel to improve the property - Part of cost base for CGT purposes, if the property was purchased after 20th August, 1991, section 110-25(4).

Travel to Improve the Property – Part of cost base for CGT purposes section 110-25(4)

Travel to Repair & Maintain the Property While Rented – Claimable against current year income

Travel to Repair & Maintain the Property While Not Rented – Part of the cost base for CGT purposes section 110-25(4) if the property was purchased after 20th August, 1991. This is the case even if you are living in the property at the time of the travel but for some reason during the time you own the property it is not covered by your principal place of residence exemption.

 

[Tom Alaka]

Suggest seeking formal tax advice, though noting per the ATOs rental properties guide (linked below) at page 12 (note pasted text below), that you can claim for interest on yet to be built IP. One would think that this should also flow for travel expenses in the circumstances?

http://www.ato.gov.au/content/downloads/ind00313554n17290612.pdf

"Similarly, if you take out a loan to purchase land on which to build a rental property or to finance renovations to a property you intend to rent out, the interest on the loan will be deductible from the time you took the loan out. However, if your intention changes, for example, you decide to use the property for private purposes and you no longer use it to produce rent or other income, you cannot claim the interest after your intention changes."

 

[Terry_w]

PLease disregard

 

[Tom Alaka]

The trouble is that the property is not owned at this stage, so the expenses incurred do not relate to the production of any income. This is why the expense of traveling to view a property that is not yet owned may not be deductible.

Ah sorry has the OP called out that he/she doesnt not yet own the property?

 

[Terry_w]

Ah sorry has the OP called out that he/she doesnt not yet own the property?

Iam sorry it looks like I confused posts while posting on my phone.

Looks like the op is building a property and is travelling there while this is occuring.

 

[Rob G.]

I am currently in the process of building Investment property. While the building work in progress I have been visiting the construction site very often to deliver item or just to monitor.

Can I claim the travEL related cost like petrol cost on car etc. if I can please advise how do I do that calculation.

Costs directly associated with constructing a capital asset seem a bit like capital ?

Cheers,

Rob