travelling expenses to inspect IP

[parra1]

Hi there,

I have an investmet property in townsville. I want to inspect it next month after the recent weather issues etc. I own the property in my name. I want to :

1. Fly Sydney to Townsville friday morming with my wife.
2. Inspect property mid morning Friday
3. Stay Friday/Saturday nights in reasonable accomodation
4. Hire a vehicle as property is bit out of town
5. Return to Sydney Sunday night.


What is reasonable tax deductions for this please. My sole purpose is for the inspection of the property but we will spend an extra day to look around at other potential properties.

I think I could just about claim everything bar maybe my wifes airfare and incidentals such as food etc.

Thanks in advance.

Parraboy

 

[marg4000]

If you do that, you will be able to claim the taxi fare to and from the IP (or maybe minimal car hire expenses) - the sole purpose of the trip is NOT to inspect the IP.

By spending Friday afternoon and all day Saturday and Sunday, the ATO will consider the MAIN purpose of the trip is for you and your wife to have a weekend away. Looking for properties is not tax deductible, it is a private activity.

Better scenario -
You fly to Townsville in the morning, taxi to IP, taxi to airport, (or hire a car for 3-4 hours) fly home. That should be fully deductible, and no confusion about mixing deductible and non-deductible purposes.
Marg

 

[skater]

Is the property in both names? If your wife is part owner, then she should be able to also claim her expenses.

What if................ you fly up on Friday and inspect your property, after this is done you go out with an agent after hours looking at stuff that you have already tee'd up before you left home (as this is outside of business hours, it can't be expected that you would talk to your PM in this time), then on Saturday morning have an appointment with the PM to discuss what needs to be done to the property and possibly liase with any handymen/tradies for works that needs to be done.

You go with another agent to see more stuff in the afternoon while waiting for your flight home on Saturday night.

No need to hire a car as you could catch a taxi to & from your IP and the agents would probably be happy to take you in their cars to view property, then take a taxi to the airport.