All Topics / General Property / Travel expenses for investment properties.

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  • Profile photo of marklesliemarkleslie
    Member
    @markleslie
    Join Date: 2007
    Post Count: 19
    November 12, 2007 - 3:12 am

    Hi all, this is an easy question I hope and relates to travel expenses for investment properties.

    I have an investment property in the south burnett (QLD) which we used to live in until we moved for work (8 hrs away).

    If we wanted to go down there for a weekend and have a quick look at the property, we can claim the travel and also accomodation for say 2 nights?

    Also, if we didnt have a car that was fit for driving 1500km return, could we claim deductions on a hire car to do this?

    Another question, can you claim deductions to fly down to Brisbane (for example) to look at property and put a contract on a house (assuming you put a contract on a house that weekend) or do you have to own the house before you can claim travel expenses?

    thanks in advance
    Mark.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    November 12, 2007 - 3:30 pm

    Hi Mark

    I am not qualified, but believe you can claim reasonable expenses incurred when going to view an investment property that you currently own.

    So is it reasonable for you to stay overnight for 2 days to view a property? Maybe it is if you are getting tradespeople in etc. Maybe not if you are just having a quick look at it. If you drove you could claim, fully or a porttion of the cost of the car – per KM method etc or the cost of a hire car if you had to drive. If flying, then you could possibly claim this.

    If you are travelling to see a property which you have not yet owned, then you cannot claim this, usually, unless you are in the business of investing maybe. But I think you can add this to the cost base – and use it to reduce CGT.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    November 12, 2007 - 10:36 pm

    I'd agree with terry on the latter. You will need to capitalise any costs relating to your research on a new ip and add that to the cost base. If you can, investigate another ip near your existing one and claim the cost of the trip on your existing ip.

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