Prepaid Home Insurance Deductability

[skylynx]

If i've prepaid the insurance on my investment property (back in early June 2009) for the upcoming year (i.e. to cover 2009/2010).....do I need to apportion this or can I claim the whole amount this seeing as I paid in full before 30/06/2009?

 

[Minxdamanx]

You can claim it in the year that you incurred the cost - i.e. the year you paid it.

Hope that helps,

 

[skylynx]

Does the same thing apply to rent.....if it's prepaid?

E.g. your start a lease with a new tenant and they prepay 2 weeks in June and 2 weeks in July...do you have to count all 4 weeks into income for this financial year....or do you apportion?

 

[Minxdamanx]

Does the same thing apply to rent.....if it's prepaid?

E.g. your start a lease with a new tenant and they prepay 2 weeks in June and 2 weeks in July...do you have to count all 4 weeks into income for this financial year....or do you apportion?

The year it hits the bank account.

Your accountant however is your best advisor.

 

[FletcherTax]

Rent is to be declared when it is physically received by you.

Insurance prepayments can be deducted in full if they relate to the following 12 months only. If you've prepaid more than a years worth - a proportion needs to be done.

Fletcher Tax Accountants