tax deductibility for self education

[graisme]

hi all
i've been reading the julia hartman book about tax and as i understood it, she said that seminars teaching about property development before a project starts are not deductible.

i'm hoping i misunderstood. just to clarify, can anyone tell me what sort of investor seminars/courses/mentoring arrangements are tax deductible?
thanks

 

[Propertunity]

just to clarify, can anyone tell me what sort of investor seminars/courses/mentoring arrangements are tax deductible?
thanks

Only the ones that are virtually 100% relevant to the activities of earning an income or profit from the activities you are currently undertaking. So for example, doing a development course is only ded. if you're doing a development, not planning to do one in the future sometime.

 

[want2bewealthy]

Does API and investment books count for property investors? I assume so, just making sure.

 

[graisme]

thanks propertunity. so does that mean that property investing books/magazines are not deductible unless directly tied to your current investing?

 

[Perp]

thanks propertunity. so does that mean that property investing books/magazines are not deductible unless directly tied to your current investing?

If you already own an investment, books and magazines on the general topic of property investing would be deductible. It doesn't have to be so specific that a book about townhouses, for example, wouldn't be deductible to somebody owning a house.

But if you don't currently own any property - unless you're class as being in the business of trading properties, such as a developer - then property investing expenses and education are not deductible.

 

[Player]

In addition to the above, I did hear a tax speaker once mention a black hole provision that allowed the deduction of self education such as share trading or property development courses as long as it related to the intended activity in the future. I think it as five years.

Not sure however if it could be apportioned over a certain period or claimed in one hit in the year the expense was incurred.

Best to also ask your accountant.

 

[Propertunity]

Does API and investment books count for property investors? I assume so, just making sure.

Yeah no problem with these as you are in the biz of property investing.