Tax deductions on family "holidays" when owning property interstate?

Let's say you own an investment property interstate, wherever that may be. Can one claim tax deduction on a family "holiday" on flights, accommodation, meals, etc? Of course, one wouldn't claim it to be a holiday, rather a trip to paint the house, replace a few washers, etc...

Shifty, but is it possible? ;)
 
Let's say you own an investment property interstate, wherever that may be. Can one claim tax deduction on a family "holiday" on flights, accommodation, meals, etc? Of course, one wouldn't claim it to be a holiday, rather a trip to paint the house, replace a few washers, etc...

Shifty, but is it possible? ;)

Instead of trying to claim 100% of the deductions,consider doing a percentage. Work a fair day,and with the remaining hours of the day, do touristy things.

Here,in Canada,there are certain rules for certain deductions, such as needing to own 2 IP's in different locations.

If it is a grey area in Aus as well, the worst that can happen, is they will make you pay the tax you would have normally paid.
 
Would a tax deduction claim like this be all above board? Driving Sydney - Brisbane to inspect an IP I own?

Driving expenses: 922kms x $0.74 = $682
Accommodation (1 night): $100

What would I need to substantiate this claim?
 
Is the primary reason for going for the IP, it's not mixed with a holiday or anything (e.g. you're staying 7 nights and claiming 1 night for the rental - if so then apportion the kilometers too)? If so, then yes I don't see why you can't claim the kilometers as you said along with the accommodation. As for evidence, keep your receipts obviously and just record your odometer reading at the start and end of the trip.
 
Is the primary reason for going for the IP, it's not mixed with a holiday or anything (e.g. you're staying 7 nights and claiming 1 night for the rental - if so then apportion the kilometers too)? If so, then yes I don't see why you can't claim the kilometers as you said along with the accommodation. As for evidence, keep your receipts obviously and just record your odometer reading at the start and end of the trip.

There would certainly be a holiday thrown in as well. Do you need to produce receipts for petrol to substantiate a claim like this or is a record of the odometer enough?
 
Well if there's holiday, I wouldn't be claiming 100% of the travel, it should be apportioned. As for the vehicle, you don't need fuel receipts if you are claiming on a cents per kilometer basis as you mentioned. It's just the ATO rate (depending on size of your car) of around 74c per kilometer. That is assumed to take into account all vehicle running costs such as fuel, repairs, depreciation etc.
 
There would certainly be a holiday thrown in as well. Do you need to produce receipts for petrol to substantiate a claim like this or is a record of the odometer enough?

Where he dominant purpose of the trip is the holiday, then NO PART OF THE CAR COSTS FOR THE MAIN JOURNEY IS DEDUCTIBLE.

Cheers,

Rob
 
As said, the actual trip will be at your expense - main purpose is a holiday.

At best, you may be able to claim car expenses from your accommodation to the IP, maybe one night's accommodation if you can establish you had to be there for more than a few hours.
Marg
 
I would like to second what Rob said. If you go on a trip, you would have to prove that your main or dominant purpose was to inspect the property and not to have a holiday. It will your responsibility to prove that, as it will be deemed that the trip was private in purpose without evidence to the contrary (eg a letter from the agent informing you that the place is falling apart is great). If the trip is held during suspicious times (eg the annual family gathering, Christmas) or there are suspicious circumstances (you bring your family along as well), I would say you don't have much of a chance of claiming the travel expenses, only the direct expenses in visiting the property from your new location.

You cannot apportion the travel costs for a mixed purpose trip, it is the dominant purpose here that decides that.
 
You could state the main purpose of the trip was to inspect/repair the property. At that time the trip was extended, and only those extra few days of accommodation, car rental,meals would be personal.

Many times, it is the wording that has the effect of how the regulations are applied.
 
You could state the main purpose of the trip was to inspect/repair the property. At that time the trip was extended...

"Dear Mr ATO, I too was amazed that in travelling to inspect my IP I realised that it's located somewhere I can have a holiday. So we stayed for a few days and the whole family had a great time on the beach. Who'd have thought the Gold Coast was a holiday destination. Didn't even cross my mind."

I'd say once the trip is extended the main purpose of the trip is no longer one relating mainly to the IP.
 
From pg 13 from the link provided in post # 3
"Apportionment of travel expenses
Where travel related to your rental property is combined with a holiday or other private activities, you may need to apportion the expenses.
If you travel to inspect your rental property and combine this with a holiday, you need to take into account the reasons for your trip. If the main purpose of your trip is to have a holiday and the inspection of the property is incidental to that main purpose, you cannot claim a deduction for the cost of the travel. However, you may be able to claim local expenses directly related to the property inspection and a proportion of accommodation expenses."


If you are inspecting and repairing a property and doing legitimate work, you won't have a problem.Just make sure you separate personal and buisness expenses. If you are taking children, they would be personal expenses, unless of course they are working with you.
 
We attended on behalf of the company AGM, worked a day....tell you what, it was full on sir, then we had to rest a day..work a day and so on

Would Fonterra or some other chezzy company hold their AGM on the Gold Coast and expect all sales and admin staff from acros the counry to attend for a conference/AGM :confused:
 
Thanks for the replies everyone. So if it took me a week to replace all of the tap washers in the house with my wife, plus a few other "bits and pieces" while the kids just sat there and watched, I could claim all expenses relating to the trip.

Sounds like a fully deductible holiday to me. :) Gold Coast IP here we come!
 
Thanks for the replies everyone. So if it took me a week to replace all of the tap washers in the house with my wife, plus a few other "bits and pieces" while the kids just sat there and watched, I could claim all expenses relating to the trip.

Sounds like a fully deductible holiday to me. :) Gold Coast IP here we come!

No.
It would not be reasonable to claim 100%.
Be truthful.It's easier to remember if you get audited.
Unless your kids are actually helping,you wouldn't be able to claim their expenses.
 
Thanks for the replies everyone. So if it took me a week to replace all of the tap washers in the house with my wife, plus a few other "bits and pieces" while the kids just sat there and watched, I could claim all expenses relating to the trip.

Sounds like a fully deductible holiday to me. :) Gold Coast IP here we come!

Well, at least you could deduct the cost of the tap washers if they wore out from tenants' use.

Cheers,

Rob
 
Thanks for the replies everyone. So if it took me a week to replace all of the tap washers in the house with my wife, plus a few other "bits and pieces" while the kids just sat there and watched, I could claim all expenses relating to the trip.

Sounds like a fully deductible holiday to me. :) Gold Coast IP here we come!

You're committing fraud and stealing from honest taxpayers.

Still, whatever rings your bells.
 
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