Claiming research expenses before purchasing

[KayTea]

I'm currently reading and researching before committing to purchasing an IP.

In my journey, I'm buying a few books, and as part of my 'due diligence' before I actually purchase a property, I know that I will need to do some serious number crunching (and am, therefore, anticipating having to purchase at least one piece of software).

However, because these purchases are being made prior to any property purchase (and, as such, aren't actually yet expenses associated with a purchase), will I be able to claim these as expenses once a purchase is made?

TIA.

 

[D.T.]

Nope, sorry

 

[Paul@PFI]

These expenses are preliminary. Non-deductible. No different with claiming deductions for training for initial qualifications, job search costs, interviews, CV prep etc.

 

[zimby]

Another good freeish way to learn is to go to auctions, open homes etc and talk with people/agents.
Talk with Mortgage brokers.
Read as much as you can on this forum.
There is so much free education out there, why spend money on this
Use free spreadsheet software.( unless you have 10+ and/or manage theses yourself)
Why not rent from the library?
Learning when to spend money is a daily task for me

 

[Roosterman]

Hi KayTea

For a residential investment property, plain old excel is more than enough to keep track of income and expenses. No software to purchase...

 

[KayTea]

Thanks for the information. Don't worry, I really don't plan on spending much at all before I purchase anything - at the moment it is more about spending the time researching and reading.

I have been getting books etc (for free, where I can), plus reading information on website/forums etc. I was hoping to get a 'fill in the blanks' piece of software that would have all the different headings and space for all the pre-purchase expenses etc (I just needed to punch in the details) to see whether or not the IP is a feasible option.

I'll just try and set up an Excel spreadsheet, and make sure I find out all the different categories of expenses - it's sorting out all the stuff like % yield etc that has me a little worried........

 

[tobe]

there is a load of spreadsheets kept here in somersoft. and of course, this forum is only part of the somersoft website which has its own software called PIA you should purchase.

 

[tobe]

information resources....


http://somersoft.com/forums/showthread.php?t=26452

 

[tobe]

and the PIA software

http://www.somersoft.com.au/piapro.htm

 

[Aaron_C]

Nah you can't claim it as there is no income being produced (yet).

 

[Jaggannath]

This site may be of use KayTea: ASIC Money Smart

 

[albanga]

I read something about this on another forum that some people had claimed things like property courses, books and even petrol visiting prospective IP sites because they had some kind of company structure where they were employees? Maybe something like a company trust?

My details may be off the mark but a few definitely said they had and had confirmed it with their accountant? Any ideas on what this could have been about?

 

[Terry_w]

I read something about this on another forum that some people had claimed things like property courses, books and even petrol visiting prospective IP sites because they had some kind of company structure where they were employees? Maybe something like a company trust?

My details may be off the mark but a few definitely said they had and had confirmed it with their accountant? Any ideas on what this could have been about?

This would be a totally different scenario. If they are an employee and getting a wage then expenses associated with that income may be deductible.

If there is a business involved in rental properties then these costs may be deductible before a particular property is found, but investing in property is generally not a business and you would be hard pressed to justify the expense before the first property is purchased.

 

[albanga]

This would be a totally different scenario. If they are an employee and getting a wage then expenses associated with that income may be deductible.

If there is a business involved in rental properties then these costs may be deductible before a particular property is found, but investing in property is generally not a business and you would be hard pressed to justify the expense before the first property is purchased.

So could someone technically start a company trust and then employee themselves with a tiny wage so they could claim these expenses?

By no means I am saying this is something I want to do, but just seeing what things people could come up with to try and stretch our taxation system.

 

[Paul@PFI]

So could someone technically start a company trust and then employee themselves with a tiny wage so they could claim these expenses?

By no means I am saying this is something I want to do, but just seeing what things people could come up with to try and stretch our taxation system.

Think about is a bit longer after reading s8-1 of ITAA97... Hint : "Business" is not the same as "company".