is Flying in a Tradie Tax deductable?

Discussion in 'Accounting & Tax' started by Andrew H, 18th Dec, 2015.

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  1. Andrew H

    Andrew H Well-Known Member

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    I have the option to fly in a Tradie due to really cheap renovation work and quality. Would the flights be tax deductable, also what other expences could i claim, their meals etc?
    Accomodtion i can get done free.

    Edit: to do work on multple IP's.
     
  2. Depreciator

    Depreciator Well-Known Member

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    What if the tradie paid all those costs and rolled them up into their bill to you. That would be easier, I reckon. Of course, I'm not an accountant.

    Scott
     
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  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I would consider that provided there is no private use then its OK.
    Does he have a ABN ? Issue a invoice ..Then OK. It may be easier to avoid issues like meals etc and just pay a all inclusive agreed value for the work. The invoice should describe the work performed and where etc.

    However if the works are considered capital expenditure no deduction would be available and it would increase the cost that is eligible for capital allowances etc. eg repair a deck by replacing some timbers = deductible. Build a deck = capital. A reno sounds like capital expenditure.

    PS IF its cheap oseas labour etc there would be issues.

    If he blends deductible and capital costs then its a mess for you to apportion between each IP and each type of work.
     
  4. Andrew H

    Andrew H Well-Known Member

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    Cairns, QLD
    thanks @Paul@PFI
    Well some would be Capital and some would be repairs so would get him to seperate the invoices for repairs/capital. Its a family member doing the work, from interstate. Might be easier as you said to just throw it in the invoice