my partner and I both have parents in Perth and we live in Qld, we have heard that if we buy an investment property in Perth that we would be able to claim flights, accomodation and car hire as a tax deduction to go "visit" our investment propery in Perth once a year is this true? has anyone purchased an investment in a location because they could claim a deduction on visiting the place?
Yes its true, but only to the extent that it relates to the property. If you take a 2 week trip to view a property for 1 hr you may have a hard time justifying it during an audit. But if you were there 2 weeks fixing it up it may be different.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You need to look at it in perspective.
If the area is a good investment then yes by all means buy. But to buy BECAUSE you can get a $1,000 a year holiday doesn't make economic sense. And remember the trip is tax deductable NOT paid for by the tax department.
Better to buy a property that will have the best financial outcome and that will pay for your holiday.
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