Hello,
I am going on a holiday with the purpose to buy some property in NZ. If i dont buy a property as i may not find anything in my week week, how can i claim it as tax deductible?
What evidence does the Aust TO require?This is interesting. I hope we get some more posts on this.
My view would be that if you were already an investor, making taxable income from buying and selling property, then a business trip purely to look at potential property, backed up with evidence in the form of appointments with agents etc would be deductable.
If however you were just thinking of maybe buying your first property, and all you came back with was a panda tan from the ski trip, then I would say no.
I would love to hear if others shared my view.
Happy Holidays….
well i have 1 property that pulling in 6k i have heard that NZ market is still making pretty good % returns. enough to make me want to go and take a look myself.
Obviously if i buy, sure i can claim my expenses.
But if only look, on what grounds and evidence can i provide to prove it is actually a business trip. Surely i dont have committ to something just to prove its tax deductible.
I have a few house in one area that i will look at, also meet with a few agents ect. Try to get a look at the costs with regards to NZ governement.
Also what would the ATO say considering it is another counrty. Maybe they would say i can claim those looses only against my nz income and my nz tax to the nz goverenment.
No offence NZ but i was going on a real holiday i would go to Europe.
I guess i need some advice on OS investing.G'day vyaw2003,
My understanding (and what do I know?) is that acquisition costs are not a tax deduction when you are classed as a property investor (as opposed to being a property trader or deriving the majority of your income from IPs) in the eyes of the tax man. To claim these sorts of costs you need to have settled on the property.
I stress that I have no qualification in this area and just offer my opinion.
Cheers,
Pud
I agree with Pud, You cannot usually claim the costs of inspecting properties you are yet to own. These are capital costs and can only be claimed against the sale.
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
I agree with the previous 2 comments. I was under the understanding that the only way such expenses could be claimed as a tax deduction was if you were registered as a buisiness and were in the buisiness of realestate trading. (and I believe this is offest by the fact you no longer get the 50% CGT exemption).
Why not call the ATO and ask for clarification.
Cheers
TammyYou can't. Easy fixed.
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