Tax deduction for car rental & petrol inspecting IP ?
- Thread starter JohnHenry
- Start date
If its a reasonable expense and directly attributable to the property inspection then yes it should be deductible as a travel expense.
Note that it has to be reasonable ie dont rent a ferrari, and if you go on a holiday for 3 days and spend 1 day at the ip then only 1/3rd of the cost is deductible.
Note also that travel expenses prior to owning eg trips to inspect are often not deductible directly but form part of the capital cost base
Note that it has to be reasonable ie dont rent a ferrari, and if you go on a holiday for 3 days and spend 1 day at the ip then only 1/3rd of the cost is deductible.
Note also that travel expenses prior to owning eg trips to inspect are often not deductible directly but form part of the capital cost base
To make the trip deductible, does it have to be the quickest mode of transport.
For instance can I drive from home in Melbourne to an IP in Kalgoorlie, or do I have to fly?
Or how about going on a cruise ship to an IP in Cairns?
The Ghan to Darwin sounds good too.
I understand the purpose of the trip must be for the IP, and you cant stay extra days along the way or at the destination, but the journey can be a great experience.
For instance can I drive from home in Melbourne to an IP in Kalgoorlie, or do I have to fly?
Or how about going on a cruise ship to an IP in Cairns?
The Ghan to Darwin sounds good too.
I understand the purpose of the trip must be for the IP, and you cant stay extra days along the way or at the destination, but the journey can be a great experience.
Does it?
Business or first class travel is accepted as a deduction (generally, not just talking about IPs).
There must be a line that get's crossed. Why should the ATO allow a deduction for renting a commodore when a barina would have done the job? Visiting a self managed IP in another state to do a routine inspection - economy, business or chartered plane?
I'd be interested to hear from accountants here. It's probably pretty moot as you wouldn't hire a ferrari or charter a plane to visit an IP.
Thanks Dave,
I have just rent an 8 seaters car so that my whole family can visit the IP in the rural area together.
So basically I have spent $162 for the car rental and $50 for the fuel for the same day inspection.
How many of the 8 family members are owners of the property?
Terry/Ed, does it really matter how many people went or how much luggage they took or if the helicopter landed on the playing field down the road? If it is the style of travel that I am accustomed to then why should it raise the ire of the ATO?
If the ip is only accessible by elephant why do I need a car? (oops thinking of inspecting the chalet in the alps with my old mate Hannibal).
If the ip is only accessible by elephant why do I need a car? (oops thinking of inspecting the chalet in the alps with my old mate Hannibal).
If you are going down this track Terry, then if there were just 2 owners of the IP, a 2-door Ferrari might just be feasible yes?
pinkboy
Could be arguable that the travel may need to be apportioned.
But my harem & 27 children are all beneficiaries of the discretionary trust which has an interest in the property.
Note to self - need a few two hump camels, can load more kids.
Note to self - need a few two hump camels, can load more kids.
Ha Ha ... like it.
Discretionary beneficiaries do not have an interest in trust property.
By the way , (original post) 8 seater family outing ... apportioning likely not necessary as it appears the dominate purpose is not relevant to the earning of assessable income but rather a private or domestic arrangement that would have occurred anyway. Any income activity only minor and incidental.
We are seeing more and more of these types of scheme suggestions recently.
One more reason why I don't deal with the public, its just not worth the insurance and tedious auditing of affairs that have not been disclosed to the agent.
I bet the original poster does not disclose the full facts to their agent !
Cheers,
Rob
Thanks for the suggestion and reply Rob, what sort of facts is this are we talking about ?
Can you claim business class travel as a deduction if traveling from WA to QLD or similar to visit a property or would this be frowned on or questioned?
I generally book fully flexible fares at the moment as I get the most points and status credits with Qantas and usually upgrade with points but if you can travel business and deduct it......whole new world!
