I can’t sleep and just had a thought. Believe it or not.
Firstly, if investing under your own name (no structures involved) and you already have an investment property, there are certain deductions such as loan interest, legal fees, etc.
Then let’s say you buy an investment book, could that be considered a legal tax deduction?
If so, then how would it work when you have set up a trust and purchase other investment books? What option do you have in claiming those expenses back?
Any input would be appreciated. I just find the deduction side of proverty investing really interesting and would like to learn more. Where does the buck stop if what you are claiming actually has gone to further develop your portfolio, even education wise?
Cheers,
Jacob.‘Stay Happy and you’ll be Perfectly Fine’ – Jack
Hi,
The whole essence of claiming deductions is the purpose for which the expense was incurred. If the purpose was for investment then it is a claimable deduction – I have claimed books/seminars etc filing cabinet workstation – as the sole purpose I paid for these items was for investment.
As I buy under individual name I cannot answer for the same deductions under Company or trust – maybe someone else can answer this one ??……MIKALA
Ok that makes sense. What about expenses solely incurred for investment before your first investment? As in for preparation?
I know that travel to the property and phone calls made to agents don’t count. Is this right? What about books to first get you educated before buying your first investment, or internet usage for research purposes? What’s the go here?
Oh, and could someone explain how it works for a trust setup?
Cheers,
Jacob.‘Stay Happy and you’ll be Perfectly Fine’ – Jack
I also would be interested in hearing the answers to Jacob’s questions. I saw my accountant today to organise my tax return for the year.I asked her if i could claim a deduction for any books and magazines about property investing and wealth creation and also seminars i have been to during the year. She seems to think as they are not directly related to earning income they are not allowable as a deduction.Has anyone had any experience claiming these items or any info that may be beneficial?.
Foston
Life is a series of new beginnings
I was just browsing the ATO website and came across a few interesting topics:
http://www.ato.gov.au/corporate/pathway.asp?pc=001/002/013/005/002&mnu=45&mfp=001/001&cy=1
It is a page for ‘Deduction Essentials’ and there is quiet a lot to read. But from what I have read, it depends on what the books/seminars/courses cover. Aslong as the content isn’t too general and the book/seminar/course has been purchased to further attain assessable income, then should be fine.
Cheers,
Jacob.‘Stay Happy and you’ll be Perfectly Fine’ – Jack
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