claiming airfares etc

From: Frank Modrich



I have recently purchased in Brisbane I flew up 3 times and signed up on the third time
Can I claim the 3rd air fare and one nights accommodation, purchase of a disposable camera, food taxi fares to and from air port and car parking fees at Melbourne all up $1000


Frank
 
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Reply: 1
From: Robert Forward


These costs are Capital Expenses. So my accountant told me when I put in my claims for travel on pre-purchasing of property.

So these claims will lower you CGT that will be payable when/if you sell the property. Otherwise, from what my accountant advises, it can't be claimed.

But just think, from here if you go up to Brisbane now for any more property investigations just drop in and visit this one and you'll be able to claim it straight away.

Cheers
Robert

PS: I'm not an accountant, so please check it out with a qualified person.

The Sydney "Freestylers" Group Leader.
 
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Reply: 1.1
From: Dale Gatherum-Goss


Hi Frank!

Rob's right, I am afraid, unless you have more property in Brisbane, or, attended seminars or something at the same time.

Have fun

Dale
 
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Reply: 1.1.1
From: Sergey Golovin


Hi Dale,

Would the visit it self to the promoter/introducer/marketer in any town around Australia be classed as introductory seminar into investment property, with all airfares, food, car, etc. claimable? And if it is how many times could one realistically visit that place/office before it becomes to noticeable.
I guess what I’m asking is - what is the “norm”.
Thanks in advance.

Serge.
 
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Reply: 1.1.1.1
From: Jacque Parker


I'm not a tax expert either but I do believe that the ATO takes a dim view of claims for airfares, meals and accom. etc if the inspection was tacked onto the end or beginning of a holiday. The inspection has to be the main reason for the trip. In Jan's latest book, it goes into this in further detail.
Thanks for that info about the pre-purchase trips and associated costs being considered as capital expenses, Robert. I learn something new every day from this forum!
Cheers, Jacque :)
 
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Reply: 2
From: Geoff Whitfield


I've no reason to believe the other people are wrong about claiming airfares.

Other expenses incurred? It's worth asking someone qualified. It may be possible. If you find out, it would be worth posting. If you don't have an accountant by now, you should. It's worth it.

And make sure you have a quantity surveyor assess your property- depreciation deductions are well worth while, and you really need to do it properly.

I've been told that one trip per year to your property is acceptable. But if you do other things as well in that trip, keep a very good diary. If you combine with a holiday, get the ATO rulings- you probably have to pro-rata flights. Follow the rules properly, and keep a paper trail.

But don't forget, these are suggestions only. Do not try this at home without the advice of a professional.
 
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Reply: 2.1
From: Dale Gatherum-Goss


HI

There are no rules!!!!

The tax office allows expenses claimed to visit properties that you own regardless of the number of trips that you make. To suggest only one trip is allowed is absolutely rubbish!

Having said that, to make one or even more trips you would need to explain just why you did and what you did whilst you were there.

Trips away that are tacked onto holidays are also OK. The trick here is to identify the primary purpose of the trip.

Have fun and don't let folk lore become fact.

Dale
 
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Reply: 1.1.1.2
From: Dale Gatherum-Goss


Hi Serge!

There is no norm I am afraid. You could argue that a visit to a promoter is for a seminar although I would think it prudent to have paperwork that supported your contention that it was a seminar. Assuming that you do, you can claim all costs with the trip from airfares, airport parking, accomodation and meals.

Again, you can do this for tax purposes over and over again in the one area if you wish and assuming that you are prepared to support your claims with receipts and explanations.

Have fun

Dale
 
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Reply: 2.1.1
From: Sergey Golovin


Great, thanks Dale,

I'm on the case ... getting receipts together.

Serge.
 
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Reply: 2.1.2.1
From: Sergey Golovin


Good piece of document Geoff, thank you for that.

It does not say much about scenario such as - business first (50%) and holidays somewhere in between of the actual business (50%) though. Let say you are busy day time with property and anywhere from 15:00 (03:00 PM) and onwards you can do whatever you like, or you have an appointment at 14:00 and before that you can do something else?

Looks like it is important to say right from the beginning what was the purpose of the trip – business or holidays and justify it.

Serge.
 
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Reply: 2.1.2.1.1
From: Geoff Whitfield


The other pages in that document are good too.

Yes, it doesn't mention a lot of other things as well. But it's a starting point.

And after the starting point, talk to a professional.

Even then, that does not guarantee anything.

We have a self-assessment regime here. ATO will accept any claims at face value when you submit the return. That does not necessarily mean they have allowed the deduction. They can come back, up to seven years later, and claim back what they initially allowed. Plus penalties, plus interest.

I'm talking first-hand here. It may still cost me my house.

Rule #1 is still, don't stuff with ATO.

Keep everything legit, keep all receipts, diaries, and whatever else, and make sure you're going by the book.

If professional advice is not enough to protect you, be extremely careful of doing anything yourself. Even be careful of listening to advice from people on this forum. Even me (especially me).
 
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Reply: 2.1.2.1.1.1
From: Sergey Golovin


Geoff,

Sorry, what would you recommend - claim it or not to claim it?


Serge
 
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Reply: 2.1.2.1.1.1.1
From: Geoff Whitfield


Serge,

What would I recommend? I'm not an accountant. I'm just pointing out some pitfalls, and pointing at some guidelines.

If that document applied to you, use those guidelines. If it didn't, talk to your accountant.

I'd recommend to use the rules to your best advantage- but not to go beyond.

But then I've been very badly bitten by ATO. So I'd also recommend you don't listen to me :)

Seriously, to get advice in here is good- but take any ideas you get to your accountant. And do it by the book.
 
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