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Inspection Visits allowed per year

Discussion in 'Accounting & Tax' started by darrelj, 12th Apr, 2016.

  1. darrelj

    darrelj Member

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    how many inspection visits related expenses are allowed per year for tax claims. I have to visit interstate to inspect my IP.
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    As per the lease.
     
    Leo2413 likes this.
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    Nothing to do with the lease, he's talking about visits for tax write off purposes.
    I'd probably say once a year really if its interstate and you have a PM managing it.
     
  4. darrelj

    darrelj Member

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    How if there was achange in the tenants in that year? Wanted to see how the new tenant is looking after the property.
     
  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    Isn't that what your property manager is for?
     
  6. darrelj

    darrelj Member

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    You are right, i thought my next trip to melbourne could be partially covered on that pretext.
     
  7. Nick Valsamis

    Nick Valsamis Real Estate Professional

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    Not an accountant, but I don't think there is a limit as long as you can justify the purpose of the visit if the ATO asks.
     
  8. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Correct. There is no designated number and it would come back to substantiation for the purposes of the trip. Typically unless there are significant issues involving time then a overnight or same day trip may be acceptable. Longer trips would attract ATO questions on review about what, why, how etc. A onsite inspect takes under 15mins with a further discussion with the PM.

    If you do anything else while there eg look a other property to buy then apportionment is required.
     
  9. Marg4000

    Marg4000 Well-Known Member

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    Probably wrong.

    Unless the sole purpose of the trip is rental property related, you will not be able to claim much at all, only the portion directly related to the inspection. One day car hire at best.
    Marg.
     
  10. Azazel

    Azazel Well-Known Member

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    Yep, for instance if you're doing a reno or maintenance over a period of time.
     
  11. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    May be an element of capital expenditure and be non-deductible too.