Tax Tip 224: Can you claim Travel Relating to Property off CGT?

Discussion in 'Accounting & Tax' started by Terry_w, 1st Aug, 2019.

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  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Tax Tip 224: Can you claim Travel Relating to Property off CGT?

    As you may have read, in Tax Tip 211: Deductions for Travel Expenses Related to Property Tax Tip 211: Deductions for Travel Expenses Related to Property , travel in relation to investment property is no longer deductible.

    But could travel be taken into account in the cost base expenses for working out CGT when a property is sold?


    Nope!

    s 110-38(4A) ITAA97 states:

    “Expenditure does not form part of any element of the cost base to the extent that section 26-31 prevents it being deducted.”

    INCOME TAX ASSESSMENT ACT 1997 - SECT 110.38 Exclusions

    S 26-31 is the section which denies deductions for travel in relation to residential property.

    INCOME TAX ASSESSMENT ACT 1997 - SECT 26.31 Travel related to use of residential premises as residential accommodation
     
    Terry_w, 1st Aug, 2019
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  2. SatayKing

    SatayKing Well-Known Member

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    Usual obfuscation from the legal profession. :D
     
    SatayKing, 1st Aug, 2019
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Its legal jargon. a technical term for 'no'.
     
    Terry_w, 1st Aug, 2019
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  4. SatayKing

    SatayKing Well-Known Member

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    LOL. Your clarification finally completes my understanding of the sign "What part of No don't you understand" which is on my desk.
     
    SatayKing, 1st Aug, 2019
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  5. Paul@PAS

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

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    DILLIGAF is my professional view
     
    Paul@PAS, 1st Aug, 2019
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  6. Mike A

    Mike A Well-Known Member

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    Tax Tip 224: Can you claim Travel Relating to Property off CGT?

    Yes you can. Mind you during an audit you will be subject to penalties of up to 90% plus interest. Maybe even criminal prosecution if it was intentional.
     
    Mike A, 1st Aug, 2019
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Here is a list of my tips in relation to claiming travel expenses, I just recorded a podcast episode on this topic which should be out in a couple of weeks

    Tax Tip 211: Deductions for Travel Expenses Related to Property Tax Tip 211: Deductions for Travel Expenses Related to Property

    Tax Tip 224: Can you claim Travel Relating to Property off CGT? Tax Tip 224: Can you claim Travel Relating to Property off CGT?

    Tax Tip 370: Deductions for Travel related to Investment property Tax Tip 370: Deductions for Travel related to Investment property

    Tax Tip 417: Travel in Relation to Residential Property could be Deductible Tax Tip 417: Travel in Relation to Residential Property could be Deductible
     
    Terry_w, 25th May, 2023
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