I am planning to buy investment property, If I buy some book or do some investment coaching. Am I able to claim on tax
Zaman
hmmmm…..
Oh ok……[upsidedown].I will let you but just this once.
Not sure if you can claim things that are associated with future purchases. If you had a property at the time of the book purchase, then you should be right.
Terryw
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Hi Zaman
I pretty sure you can list it as education on your return, I have, lodged my return, the accountant did not say no, they all went thru.
time the purchase and the seminars closely to your property purchase. I did have the expenses around the same time of my 1st property purchase. Therefore the connection is there.
though always check for your self. the ATO site has heaps of info.
Celeste
Originally posted by celeste:I pretty sure you can list it as education on your return, I have, lodged my return, the accountant did not say no, they all went thru
I’m pretty sure that education expenses must be related to your employment – so I always thought that unless your business is investing (with all that entails), the answer would be no.
In fact, I’m sure I was told that my AFR subscription and investing magazines can’t be claimed even though I make both income and capital gains on shares…But I’m no tax expert.
On the other hand, you can of course claim absolutely anything you like. Most claims will go through even if they’re dodgy. The audit is where you’d be caught out once in a while. So don’t cheat.
Once again, I’m no tax expert. Don’t take my advice, but don’t take that of anyone else either – unless they are qualified.
F. [cowboy2]
Unfortunately you can’t claim a tax deduction as at the time you don’t have a source of income aginst that deduction, but forget about the tax deduction, think about the additional profits that you’ll be making that you wouldn’t have without the books or coaching.
It’s a small cost to gain a much larger benefit, once you’ve learnt the investment principles then you will gain from these for the rest of your life.
Originally posted by celeste:Hi Zaman
I pretty sure you can list it as education on your return, I have, lodged my return, the accountant did not say no, they all went thru.
Celeste!!!!!
Of course it went through. Everything you claim automatically goes through. It is later that you get into strife if you get audited! Luckily this is not a large amount so you shouldn’t get into trouble.
Why do you pay an accountant and then not take his/her advice?
Your accountant was correct. You have to be making an income from that area to claim education in that area.
The answer is no – but you can keep all your books and when you do get a property you can depreciate your “library”.
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I did a H&R block tax course recently (not saying thats an accomplishment or anything [upsidedown]) and can confirm what most of these people are saying is right.
If you havent bought the investment property then no deductions can be claimed from self development.
As for lodging dodgy tax returns- the ATO assumes that the information you have given to be correct. And as mortgage hunter said, its when (and if) they audit you, your up you kno what creek.
I never knew you could/ thought of depreciating books etc when you eventually got the investment property mortgage hunter. Do you know this for sure?
Originally posted by Bo_D_:I never knew you could/ thought of depreciating books etc when you eventually got the investment property mortgage hunter. Do you know this for sure?
When I was an Army Officer I depreciated a large library of Military History books that I needed for my continuing education. This was a few years back now.
Unless something has changed recently it shouldn’t be a problem.
But if you own IPs then I reckon you would be better off claiming the full price in the year of purchase rather than depreciating them over time.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Here is a link to some tax exam questions and answers concerning the claiming of self education expenses:
http://www.taxinstitute.com.au/student/contax_7_exam.html
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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