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Pricefinder subscription - deductible?

Discussion in 'Accounting & Tax' started by JohnPropChat, 17th Sep, 2015.

  1. JohnPropChat

    JohnPropChat Well-Known Member

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    If I subscribe to pricefinder for a year (paying monthly) and then found my IP through it. Would I be able to deduct all of the cost as a deductible?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    No.
     
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  3. KayTea

    KayTea Well-Known Member

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    That's interesting to know.

    But I believe that investment magazines subscriptions are claimable (please correct me if I'm wrong). Why is it the case that the magazines are, but the research website isn't?
     
  4. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    The expenses relates to acquisition of IPs not the management and issues associated with producing assessable income. Only costs which are associated with production of assessable income are deductible. There are loads of costs which are preliminary to acquisition that aren't deductible ie travel, meals (private), BA fees, inspection etc.
     
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  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    If the mag relates to property and you don't own one its not deductible. If the mag relates to acquisition it may not be, if the mag is unrelated to property its not.
     
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  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    For a business who often uses it to learn local market conditions and do searches on clients / comparable properties, I'd say it's deductible.

    If you're using it to find an investment property, I'd say not.
     
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  7. KayTea

    KayTea Well-Known Member

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    Oh boy, talk about confusing……

    Here's a question - if I subscribe to 'Money' magazine, and I already own (and continue to purchase) shares, as well as other forms of investment (such as an IP), is that magazine deductible?
     
  8. HD_ACE

    HD_ACE Game-Changer Premium Member

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    Do the shares produce an income?
     
  9. D.T.

    D.T. Adelaide Property Manager Business Member

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    I'm not sure if that's the test. Houses produce an income and pricefinder isn't deductible for people looking for an IP to buy.
     
  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    S 8-1

    If an expense relates to the production of income it will be deductible.

    Subscriptions to price finder wont be because it is incurred too soon. Doesnt relate to current income.
     
  11. Coota9

    Coota9 Well-Known Member Premium Member

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  12. Catalyst

    Catalyst Well-Known Member

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    Thanks for the info, @Paul@PFI. I thought BA fees were deductible.
     
  13. D.T.

    D.T. Adelaide Property Manager Business Member

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    Counts towards the purchase cost of the property, so is 'deductible' towards the CGT if you sell the property.
     
  14. Catalyst

    Catalyst Well-Known Member

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    Thanks @D.T
     
  15. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  16. HD_ACE

    HD_ACE Game-Changer Premium Member

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    Agree but they own shares already.