Tax deduction on internet subscription and tools ?

People,

As a beginner investor I'd like to know if the following items that I have subscribed on the internet can be taqx deductible this financial year?

1. Online premium subscription of Proeprty earch engine like: Property Investar, RPData, PriceFinder,... etc.

2. Excel Spreadsheet calculator: http://www.investmentpropertycalculator.com.au/ultimate-investment-property-calculator.html

3. Magazines subscription: API, YIP, SPI, etc...

Which one that I can claim ?

 

As Simon has alluded if you aren't already a property investor its likely you cant claim anything. These costs would be preliminary and a form of self-interest rather then satisfy the requirements of s8-1 of ITAA97 which has a requirement that cost incurred in earning assessable income can be deducted.....

http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s8.1.html

 

Paul and Sim,

yes I do have two IP already.

 

Most probably deductible

 

Thanks Paul.

 

That said the tools may be depreciable if items cost $300+. Or if there is mixed use only a % to claim.

 

Many thanks Paul, once again for the detailed reply.

I appreciate it.

 

Hi Paul @Paul@PAS

Recently checked with the tax accountant, he said these expenses are personal expenses and therefore not deductible.

So the facts are:
- Money was paid for a property investment course and annual coaching membership
- Signed up to property tools such as Investar and paying monthly subscription
- Then bought the IP (didn't have any IP before those money were spent and the old ones were sold)

So when the course and the annual membership were paid for and the Investar subscription was signed up, I didn't have an IP. After I bought the IP, the only expense was I continue to pay for the monthly subscription.

So is my tax accountant right?

 

They are right

 

Many property "courses" are spruiker activities. I know of one where we regular ARGUE with clients that are told by the seminar provider it is deducible. They arent tax advisers and there is no "course" with a learning outcome. They teach you issues preliminary to any activity OR that relate to acquisition. I have NEVER EVER seen written advice from these firms saying"dont buy property". Their advice is always the same. One of the key matters is they support and assist strategies to BUY more property through the learning which is often merely to make you a close contact they can sell to !! . The elements rearding income dont wash as the property path is all losses. There is no income strategy albeit cashflow. I suggest a binding ruling and nobody has got one yet. (This is a wellknown firm). They ring and abuse me about four times a year and I dont care. They are wrong and should be penalised for suggesting things are deductible. If they lie about tax issues what else is a lie ?

I agree with your tax adviser. These expenses are preliminary to any activity. They also likely relate to youir decision to acquire. They are also not a CGT third element cost either.

 

2 questions:

I presently have several $100,000s invested in the stock market.
So that I can make informed decisions on this investment, can I claim the cost of investment education resources as a tax deduction?


I presently have several $100,000s invested in the stock market, in my industry superannuation account.
So that I can make informed decisions on this investment, can I claim the cost of investment education resources as a tax deduction?

 

Yes if they solely relate to the dividend income then 100% potentially

 

if the expense was incurred to track your industry super fund i would argue it isnt deductible.

for your personal portfolio potentially

 

I wouldnt argue at all with you on that Mike. Its 100% non-deductible for the super element EVEN where there is a SMSF. That use also means a lesser deduction is available for the personal shares deduction element.

On the issue of self education its highly probable that the cost is non-deductible. Personal tax advice on deductible costs would be wise. Courses to teach new skills etc will not be deductible where a future income may result. Many trading courses also fail deductibility requirements as they dont produce a qualification as such and merely guide and assist skills you dont have to produce income in the future. The nature of the course content needs to expressely address enhancing income, not trading profits , gains etc.

Binding rulings can assist to give improved certainty.