Claiming of meal allowance when visiting & staying at our holiday investment property

[jammally]

Hello,
My husband and are doing small renovations at our holiday investment property. We can only attend and do our work when the property is not being rented. (At this time of year, approaching winter, we're finding it hard as not many people want to go to the beach when it's cold and heading onto winter). Nevertheless, we would like to know what we are eligible to claim when it comes to meals.
Each time we go down to the property we work at least 70% of the time and might stay 2-3 nights to get as much done as we can. Is there a maximum per night we can claim for our meals? And if so, does that have to be eat in or dine out, as most of the time we eat in cause we're too buggered to go anywhere after working all day.
Can anybody assist please?
Thankyou in advance

 

[Terry_w]

Meals are a private expense and generally not claimable.

 

[dex]

What is a holiday investment property?
If it's your holiday home I think you're a bit cheeky trying to claim your meals. Actually I still think you're being cheeky even if it's an investment property. Buy your food and don't try and claim it as a tax deduction. People like you spoil it for everyone.

 

[marg4000]

Just make sure you make diary notes of the nights you stay in your holiday property. As the property is not available for rent, you will need to adjust your claims for deductions proportional to the nights the property is available for rent.

And, as said, meals are a private expense and not deductible - you have to eat anyway whether at home or at your IP.
Marg

 

[Scott No Mates]

Stay in a hotel & claim the lot.

 

[geoffw]

If a property was held in a trust, could the trust pay a living away from home allowance?

 

[Paul@PFI]

No. There is no employer / employee relationship.
Also receipt of an allowance doesn't mean a deduction can be claimed.

eg : Travel allowances on a per diem rate can be deductible to the employee against the allowance received BUT they must have incurred hotel / motel accom costs AND then nexus to earning assessable icnome also needs to be met. An allowance on its own seems a fail. Staying in their car or in tent fails the ATO's position on daily accom / travel allowances.

This issue pops up a bit with overnight allowances and overtime meals. Truckies cant just claim a deduction cause they received an allowance. A case two years ago saw an agent punished for preparing a return on that basis and not enquiring if the cost was incurred and deductible. (It wasnt)

If it was that easy wouldn't all employees receive car allowances, clothing allowances etc...

 

[Paul@PFI]

What is a holiday investment property?
If it's your holiday home I think you're a bit cheeky trying to claim your meals. Actually I still think you're being cheeky even if it's an investment property. Buy your food and don't try and claim it as a tax deduction. People like you spoil it for everyone.

I dont agree. An owner may choose the periods when vacancy is available for doing work. available for rent and "vacant" are mutually exlcusive. I see motels all over the place with "VACANT" signs and they claim their costs. I see many landlords do work between tenants. The key issue is should apportionment of costs occur if the owners habitate ??

That said if you moved in for two weeks it a bit different to a sudden decison to stay a night or two and do work on the place when it is clearly vacant esp over winter. Its not that different from doing work between tenants and leaving the place vacant for a week or two while work is done. And if the accom at a motel is deductible in any case I see no issue with using the available accom provided it is vacant (but available).

Meals = non-deductible. Ditto your clothing and any % of drivers license.

 

[coastymike]

Paul

What is the trust had an employee agreement in place with an individual to manage a property or a number of properties held by the trust. A properly documented agreement where the employee is paid a travel allowance in accordance with the commissioner reasonable travel allowance ruling.

 

[Rob G.]

My husband and are doing small renovations at our holiday investment property.

Its all a question of fact.

The travel, food, drink and accommodation must be incurred in earning your assessable income. The fact that you stay at the holiday house rather than incurring costs staying elsewhere is not decisive providing that overnight stay is reasonably necessary.

However, if overnight stay in the area is not reasonably necessary then food and drink may take the form of non-deductible entertainment or private expense.

Also, if your "renovations" are expenses of a capital nature then the above expenses are also capital.

Apportioning based on private or capital purposes may be necessary.

 

[Paul@PFI]

Paul

What is the trust had an employee agreement in place with an individual to manage a property or a number of properties held by the trust. A properly documented agreement where the employee is paid a travel allowance in accordance with the commissioner reasonable travel allowance ruling.

The reasonable travel arrangement governs a employee in receipt of wages AND an allowance that covers accom, food and incidentals incurred whilst earning assessable income. A employee-beneficiary poses a major concern. (There is no deduction for beneficiary entitlements paid to a beneficiary) Further Para 8 of TD 2012/17 (2013 year) would also pose a concern if the accom is the investment property.

The size and substance of the trust activities may be a factor. An arms length employee who maintains and manages properties. Yes its possible. It fails in the example of this thread.