I have a few questions which came about on advice what was deductible and what was not. Generally, I have rental properties and this info was relevant to that.
I always thought the test was it had to be related to your occupation. ie. A hairdresser could claim on a hairdressing training course but not a accountancy course, even if they are planning on changing occupation.
Appreciate your thoughts on this. When is a course or training deductible for you. When has your agent or ATO declined it.
How would the range of property courses in the market be tax deductible?
Cheers.
An expense is generally allowed as a tax deduction if it is incurred in generating income - in this case rental income. Also, timing is important if the expense is to be deductible. The expense has to be incurred after you own the property ? usually after settlement.
According to ATO regulations,
- If the program relates to increasing wealth ? no deduction
- If the program relates to acquiring/sourcing property ? no deduction
- If the program relates to improving the value of a property ? no deduction
- If the program relates to improving rental revenue ? yes deductible
- If the program relates to reducing rental expenses ? yes deductible
- If the program relates to getting better tenants ? yes deductible
- If the program relates to better managing the agent ? yes deductible
According to ATO regulations,
- If the program relates to increasing wealth ? no deduction
- If the program relates to acquiring/sourcing property ? no deduction
- If the program relates to improving the value of a property ? no deduction
- If the program relates to improving rental revenue ? yes deductible
- If the program relates to reducing rental expenses ? yes deductible
- If the program relates to getting better tenants ? yes deductible
- If the program relates to better managing the agent ? yes deductible
I always thought the test was it had to be related to your occupation. ie. A hairdresser could claim on a hairdressing training course but not a accountancy course, even if they are planning on changing occupation.
Appreciate your thoughts on this. When is a course or training deductible for you. When has your agent or ATO declined it.
How would the range of property courses in the market be tax deductible?
Cheers.