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Landlord Insurance renewal date 27/07, Is deductable for FY15 if paid before 30/06?

Discussion in 'Accounting & Tax' started by roberto, 26th Jun, 2015.

  1. roberto

    roberto Member

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    Hi All,

    Just received the renewal of the landlord insurance policy of the from one of my properties. The renewal date is 27th of July.

    If I pay it before the 30th of June, can I claim the whole amount on this year's (FY 15) tax return? I am thinking the answer is yes because it is similar to pre paying interest, but just wanted to double check here. What do you think?

    Thanks,
    Roberto.
     
  2. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Yes
     
  3. Chilliblue

    Chilliblue Well-Known Member

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    Claimable in the financial year paid.
     
  4. mimosa

    mimosa Member

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    How is this different from Wylie's scenario "Be careful trying to prepay insurance"? I thought the answer in that thread was that you could only prepay on a policy that would expire on June 30 2016 or earlier. Did i misunderstand that, or is it different for building insurance vs landlord insurance?? Confused :confused: Thanks
     
  5. htopg

    htopg Well-Known Member

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    On the other hand, it the invoice date is for financial year 2014-2015 but your pay after 30/6/2015, it can still be claimed for financial year 2014-2015.
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Expenses are deductible when they are incurred. This is generally payment after you are legally bound. Paying an invoice that has been issued would mean you are legally bound and it should be deductible when you pay it.
     
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  7. wylie

    wylie Moderator Staff Member

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    I think it may be to do with the fact I have a automatic payment set up on renewal date, but I'm not sure. I plan on calling again tomorrow to double check.
    It seems the option of canceling in June (only 10 days before the new policy starts) and starting an exact same policy in June would trigger the premium to more than double due to a different underwriter. I don't understand why I have to cancel and take out a new policy with a new underwriter and cannot simply cancel the auto payment and pay manually without changing the policy and will be checking this tomorrow.
     
  8. wylie

    wylie Moderator Staff Member

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    Called just now and it is Youi-specific. Because everything is automated I cannot bring forward the payment into this financial year. Chap I spoke with said he has been asked this plenty of times just lately, so clearly I'm not alone in trying to bring my payment forward.
     
  9. mimosa

    mimosa Member

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    bummer!