I'm going to QLD can I claim a deduction for travel ?

How many times have I been asked this one in the past month ?

Travel to inspect IPs
If you already own property in QLD and an element of your trip while on holidays in QLD then the following applies:

No partial deduction for car / airfare or general accom costs. The predominant purpose for the trip is for a holiday. However, additional direct costs attributable to attending agent inspection, meeting etc may be deductible For example costs to travel for the day between Gold Coast and the Brisbane agent. Claim the specific sosts for that trip alone eg car hire for that day if the hire was soley required for that trip, fuel, etc. Or own car claim the KMs return. No meals etc

Travel to meet agent/s and scope out next property purchase
No cost is deductible in such instances in any event. None at all. Never has been.

Travel solely from Home to QLD to inspect IPs
That same day travel is deductible eg airfare, car hire, tolls etc. Overnight accomodation may not be deductible where the meeting is scheduled and accomodation is not a element of the trip but a convenience. Eg fly out of Syd at 8am, meet agent at Midday for two hours. Why did I say that and the ATO didnt (The ATO Guide below overlooks the term "necessarily incurred"... Its easily argued there is no requirement to stay overnight and another purposes for travel also exists. But if the travel is soley for deductible purposes and includes necessary accomodation then its deductible in full for the TAXPAYER that owns the property. Tip: Spouse deductions will require apportioning if they are not a owner. Meals incurred while travelling are deductible where 100% of the travel purpose is deductible.

I'm blending work, holidays and my IP matters over a week.
Retain all records of costs and also maintain a travel diary for the entire period. A pro-rata deduction may be available for the work and the existing IP issue. Note that the ATO are likely to decline any deduction on review if you are on paid leave when attending "work" interstate or overseas. For a true work related link it helps that the employer sanctions it by not treating that day as annual leave. As the costs to address buying a possible property remains non-deductible. Information on travel diaries here

My family are with me - How do I apportion ?
The issue is less about apportioning (although that is a issue to address) and more about the predominant purpose of the trip. Assuming a trip of say 5 days means no travel diary the purpose of the travel will consider what you did each day. Wet and Wild, Dreamworld and such places are obviously private and indicate the reason for the trip was recreational. Only additional costs for attending the agent to address existing IPs would be a deduction.

I'm travelling up to QLD and spending a week there. I will replace or build a deck, do some repairs and meet with the agent also.
A diary must be maintained and also all receipts etc. Meals are private. The time taken to repair or replace a deck cant be included in the cost as labour is free. Th travel costs may need to be apportioned. The "repair"may be a capital expense or may be a genuine partial; fix of some boards etc. But where different materials are used (eg tile over timber ?) or all the boards are replaced with new modern plastic timber lengths then its a capital expense. The cost incl travel attributable can be treated as a 40 year deduction Div 43. The few hours you meet the agent may be deductible but the predominant purpose of the trip wont be to meet the agent.

My IP is not in QLD but local to me. I drive by regularly to keep a eye on things. Can I claim all my KMs ?
No. The travel is incidental to a private journey etc and isnt deductible. Collecting rent is a deductible purpose. Mowing laws also. The costs of mowing would otherwise be minor and include trivial fuel etc. Own labour or that of a paid child isnt deductible. Only expenses paid to a legitimate business who provides valid receipts would meet the substantiation requirements in moist cases. Claiming to pay a child would be met with skepticism and for such a minor issue is not worthy of the expected angst.

https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/Rental-properties-2016.pdf
Page 18 contains examples and explanations

 

And how many people ask the same thing about less desireable holiday destinations such as Canberra?

 

Did a daytrip just last week to inspect IP reno. Do I need to keep the taxi fare receipt?

 

Would this be classed as pleasure? Sorry had to point it out

 

Yes

 

Tassie = None. Funny that.

 

What if I am travelling to perth from Sydney , surely can't do so without staying overnight, is the accommodation deductible ?

 

Paul answered that in the OP.

 

Yes. I was asked a similar question and it was..."But Im not meeting the agent when I get there. My wife and I are probably going to go past and also look at other buying opportunities'". Do I need to meet with the agent ? Technically no but what was the purpose of the travel if it wasnt management of the rental? In that case, no deduction.

A example of other non-deductible travel is to attend a spruiker seminar in Darwin. Just because you own a property doesnt mean education is deductible. Attending Cherie's reno course to learn how to up the ante for rent - Yes. But where the pitch is all about buying and leveraging and dev strategies to make $$ is not a deductible purpose even with existing investment income.

 

What if they are going to QLD to visit an awesome property lawyer for legal advice regarding their existing IP. They meet said property lawyer for a long meeting lasting several hours and requiring copious fluids to sustain them through the gruelling conference at a well stocked craft beverage establishment. When they wake up the next morning, and for completely unrelated reasons, they can't remember a word of the advice given at the first meeting. They schedule a second meeting but this time avoid any craft beverage establishments as for some completely unrelated reasons the thought of same makes them feel queasy. Are the 3 beroccas and half a packet of headache pills required the next day deductible?

 

Legal advice would generally be a capital expense.
If it relates to a tenancy disput it may be a revenue expense though.

 

In some instances legal fees for capital expense can also be deductible now eg setting up a trust etc. The cost of the tax advice etc may be deductible where other costs arent.

Cost of managing tax affairs - Example of deductible legals say to get tax advice