Tax Deductibility of Courses

[Kevmeister]

Seeing as I don't have an IP's as yet, it is obvious I am not earning any income from IPs. So on what basis does a property investment course (or any investment course, for that matter), become tax deductible?

I would also like to ask the same question of books etc relating to investing that are purchased for educational reasons.

 

[DaleGG]

Hi Kevin

I believe that we need to ask "how can I claim somnething with an open mind and an expectation that the answer could be yes as opposed to doubting that something could be claimed . . .

Do you have any other investment income at all? The costs might be attributable to that investment income instead. Alternatively, many courses and books deal with tax issues of investing which would automatically make the cost tax deductible.

Or, if your company or trust paid for the course then it would be deductible to the entity. Or, if you are a director of a trustee company then the trust could reasonably expect you to know more so that you could fulfill your duties to the trust.

There are many possibilities . . .

Do any of these help?

Dale

Originally posted by Kevmeister
Seeing as I don't have an IP's as yet, it is obvious I am not earning any income from IPs. So on what basis does a property investment course (or any investment course, for that matter), become tax deductible?

I would also like to ask the same question of books etc relating to investing that are purchased for educational reasons.

 

[sbe]

Kev,

There was also a recent change by the ATO, (which Dale will know much better than I), something about expenses incurred in setting up a business....

Some of the tests the ATO would apply (per ATO site)

Do you have more than just an intention to engage in business?
Do you have a purpose of profit as well as a prospect of profit?
Is your activity planned, organised and carried on in a business-like manner?
What is the size, scale and permanency of your activity?
Is your activity better described as a hobby, recreation or sporting activity?

However, the ruling went something along the lines of if you can show you have every intention of engaging in the activity, precursor expenses should be deductable.

Dale, can you confirm or clarify??

Cheerio,

Simon.