?deductions for finance journals

[john doe]

Hi all,

Can anyone comment on this? Since reading this forum, I developed the opinion that if you paid for educational material on financial matters (eg.books on real estate or shares, or journals, the AFR etc) with even just the intention of being an investor, then you could claim these expenses as a tax deduction (keeping receipts as proof). That is, you don't need to own shares or property yet, but just have the intention of doing so.

But today I was reading through this month's edition of "Personal Investor". They have an article with tips about tax deductions. Under the title of "Managed funds & capital gains" there is a sub-title "financial journals" (p.44). They then write:

"You may be able to claim a deductions for publications such as "Shares" magazine or "Personal Investor" but you have to show that there is a link between your income earning investments and the publications. Brass says that the deducatibility of share investment subsciptions to investment information services applies more to a share trader than a share investor."
(Brass is an accountant providing opinions for this article.)

Is this correct? Do you have to already have "income earning investments" to claim the deduction, or am I reading this incorrectly?

CHeers

John

 

[DaleGG]

Hi John

Yes, the article is technically correct and therein lies the problem and the opportunity . . .

To the letter of the law, yes, you should be able to show a direct link between your existing income and the deductions. However, virtually everyone has investment income when you consider savings interest, dividends, or rental income.

And, then you have a possible link to your wages or business income as well.

Where there is a will . . .

Dale

 

[john doe]

Hi dale,

Thanks for that. I'm just wondering then why so many accountants (including my own) try to discourage the average "mum & dad" investor (I put myself in that category) from claiming deduction for educational materials on finance? You'd think they'd want to help people out by showing them something that you can legitimately claim. Is it just a matter of everyone having their different interpretation of tax law and different comfort zones? But so many times in main stream media I read comments like the one I posted.

THanks again

John

 

[DaleGG]

Hi John

I agree, but, unfortunately most are more interested in protecting their own bums . . .

If you give safe advice, no-one can sue you!!

Dale

Originally posted by john doe
Hi dale,

Thanks for that. I'm just wondering then why so many accountants (including my own) try to discourage the average "mum & dad" investor (I put myself in that category) from claiming deduction for educational materials on finance? You'd think they'd want to help people out by showing them something that you can legitimately claim. Is it just a matter of everyone having their different interpretation of tax law and different comfort zones? But so many times in main stream media I read comments like the one I posted.

THanks again

John