Hello
I was just thinking the other day that myself and Im sure alot of you must spend a heap of money on investing books and courses. What I was just wondering was if you then go onto invest do these items become tax deductable like educational items for students or tools for a tradesman? Does anybody know about this or is there an accountant out there that can help.
Scott
“Together we combine our strenghts and eliminate our weakness”
ive just asked my accountant about this. and how it works is,
if you dont have an IP then the cost of these courses/books are part of your cost base ie not tax deductable, however if you have an IP you can claim a deduction for the courses etc.
You must remember though that they are not 100% tax deductable but a percentage of it is ie the GST on the books/courses are.Hello Shawn
Thanks for that its good to know. I hadnt actuall kept my recipts for my books but I will from now on.
Scott
“Together we combine our strenghts and eliminate our weakness”
Hi strw23,
If you didnt keep the receipts, did you use a keycard or credit card for the purchase of the books? If you did, see what your accountant can do, your accountant should be able to help justify those transactions.
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”Hi Shaunwalker said
You must remember though that they are not 100% tax deductable but a percentage of it is ie the GST on the books/courses are.
What do you mean there Shaun? I beleive that 100% of the costs should be deductible. (if it relates to your current investments, that is)Terryw
Discover Home Loans
North Sydney
[email protected]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
sorry, my mistake. i was thinking of airfares to see your IP, where only the GST is refundable.
my mistake!
shaun
if you dont have an IP then the cost of these courses/books are part of your cost base ie not tax deductable, however if you have an IP you can claim a deduction for the courses etc.How does this work for shares? I’m pretty sure you can claim against courses and books, etc, that relate to shares so if the above is true for property then if you own a share(s) can you claim deductions for courses, books, etc???
Hello all
Is it true that only the gst component of your airfare to see your IP is refundable? On reading this page on the ato site ( http://www.ato.gov.au/individuals/content.asp?doc=/content/31610.htm&page=4 ) I am under the impression you can claim for the airfare as long as it is only for inspecting the property and not for holidaying purposes….
Kyl
i think that if you don’t apportion a certain amount to ‘personal’ which sounds legit and justifiable then there is a chance the ATO or whoever just says that you aren’t allowed to claim.
cheers-
MiniShaun, what you talking about?
If you can prove that the trip you took was for IP purposes, then entire airfare and accomodation is claimable. If you only go to see one property, and spend three nights, you’d best have good reasons – ie, day 1 visit property with manager, day 2 do research in area, night 3 is body corporate meeting or something.
If you can’t justify, then it will be hard to explain in an audit.
Cheers
Melstrw23
i’ve claimed books and courses, your computer ( usually they depreciate over 3yrs), anything related also, for example property magazines etc
With shares you could claim the newspaper ( be reduntant with computers nowadays as you’re getting yesterdays closing prices)
You can claim many,many things, just don’t expect your accountant to give you all the info’ – he only see’s you once a year and doesn’t know what you’re up to all the time.
Shaun
In my experience you can claim airfare and accomodation, keeping a diary is the easiest way i.e – Day 1 , fly in, see real estate agent 1,2,and 3
Day 2, look again at properties i was comfortable with, plus others
day 3, relax day and call mortgage broker at home
day 4, complete deals,
day 5 fly outNever had a problem with this before when i held a property 3900kms from where i lived, and as it was the major city in the state, took my holidays there and claimed a ‘portion’ of airfares etc, seeing PM etc
Tax time can reap many rewards, talk to others and ‘ask’ many questions of your accountant- if you can find one into property, all the better!!
REDWING
In terms of course, are those fully tax-deductible? For example, if I was an existing property investor and I paid $15k for one of those property seminars, would I be able to claim?
kay henry
Hi Kay Henry,
if I was an existing property investor and I paid $15k for one of those property seminars, would I be able to claim?
With no problems, you are able and entitled to claim that. One thing though, you wouldnt want to lose a 15k receipt. [
]cheers,
s.i.sDear All,
How did you guys/gals claims all books, magazines, courses…etc with your accountant? do you just bring in the receipts? for me I spent quite a lot of time enter all the amounts in excel and bring it to the accountant. it is time consuming, but I think if I just bring the receipt to the accountant then they will miss out something in the process.
Kind regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Hi Chan – best to continue itemising everything yourself. You have a better idea of your business and the accountant would charge you more for the time it takes to sort through a ‘box of receipts’.
Hi Chan$,
The most easy way of doing it. Is purchase everything on credit card or your debit card. Keep all reciepts, then when your monthly credit card statement comes in. Highlight all the applicable expenses that match your receipts, Your accountant can then go through them quickly and is able to justify them with them with the recipts as proof of purchase.
cheers,
s.i.sI type up everything that I have bought, with title and cost, and hand that to the accountant.
the receipts etc. I keep at home in a file. He’s more than happy to do it that way, it saves him a lot of hassle.
Cheers
MelI would think with a 15K (or 50K seminar) you would NOT be able to claim it as a legitimate expense.
My study is claimable because it is an accredited course. It is 100% deductible. But I doubt I would be able to claim 50K from my wages for a course that is not accredited.
Can anyone clarify for me? [
]kay henry
Hi Kay,
It might not be accredited, but if it is related to your property investing, which you do, it is claimable and your accountant can help you justify those reasons.
cheers,
s.i.sShirley, S.I.S,
Thanks.
I normally keep all the receipt in the box and 1 month before tax time go through time and enter them in excel. look process but it’s work for me so far.
Kind regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]
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