All Topics / General Property / Tax/Deductible Question

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  • Profile photo of nayes03nayes03
    Member
    @nayes03
    Join Date: 2003
    Post Count: 5
    February 16, 2004 - 7:44 am

    Hi all,
    I have been reading this forum for a while and have learnt heaps – thanks to all who post.

    I just have a question regarding tax deductions. My hubby & I are looking to buy a +ve cash flow IP and would like to fly to the location to check out the place before we commit. My question is if we buy in the town can we claim the cost of both our airfares, car hire and accommodation? It would not be a holiday (you wouldnt visit this town to holiday!!!!) and we would fly in fly out in a weekend.

    In general what are the tax guidelines for travel to IP’s.

    Thanks for your help.

    Nayes

    Profile photo of tonyy21692tonyy21692
    Member
    @tonyy21692
    Join Date: 2003
    Post Count: 128
    February 16, 2004 - 8:45 am

    Hi Nayes03

    Deductions prior to commitment, (I guess you mean after settlement and prior to being available for rent?) Not deductible.

    Why? Prior to the start of the income stream. And it’s not even included in the cost base on the eventual sale.

    You can argue w/ the ATO but thats all you will have at the end of the day- an argument.

    Best to see an accountant or read the vast amount of Rental rulings and cases on the ATO website.
    Cheers

    Tony

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