Travel claims

As the dust settles, does anyone know how travel is effected if doing repairs, not the shonk claims that started this change.

I may be better if discussing running as a business with acc.

Are the meals still allowed.

Or do we need to wait till next year to know what exactly will be kosher and what wont ?

 

As of the 9th May 2017 announced budget change (effective from 1 July 2017) travel deductions are not deductible for a IP. I dont quite understand the question with that in mind. Meals and travel can be a capital expense if it is not deductible under cgt rules , not repairs

 

Meals and accommodation were surely separate items of expense being claimed ? Does that stop ?


In relation to travel, I thought it was due to specific things, such as meeting PM, or looking at your property, or has the ability to operate as a business (which a vehicle would surely be legit) gone the way of the dodo too ?

 

No they are travel costs. Your dont operate a business. Its an IP

 

What about travel costs to attend Body Corporate meetings for a property that is an IP?

I wouldn't think/want my PM to attend as my proxy.

 

Got it on travel costs, so they were linked.

 

I think looking at getting business status is going to be on the agenda with acc.

ignoring that though....

how does this work for the cost base, keep logging the trips as per normal, and keep fuel costs ? or is it calculated the same way.

 

The cost was once deductible. After 1 July it wont be. Keep a records of dates and distance x 66cents per km.

 

A property business requires a helluva lot of property. Think 20+ and higher. And extensive reliance on the income it produces as a full time activity rather than a job. Often with hands on management of occupation and repairs etc. Common features can include multiple income dwelling such as blocks of apartments etc.

A property business can trigger other tax issues. I have seen it twice in my career and its rare and generally missed by many tax advisers who arent very property savvy. It means all ownership % can get ignored too. It does open up a very complex strategy for super however.

 

That's a bugger.

I am involved with two Body Corporates. With one, I am the Chairperson and have to attend the meetings. With the other, I have $3M of value in the complex - with that sort of investment, IMHO the wise thing to do would be to attend all meetings.

I do keep a record of the dates, starting/ending mileage, etc on trust expense forms.

One meeting is 100kms away - looks like I will be losing $132 of deductions for every meeting.

Maybe, I need to invoice the Body Corporates for my travel costs?

 

If its a trust then YOU wont claim a deduction. The trust may but it hasnt incurred an expense. Solution may be to seek reimbursement from the trust for your outgoing based on cents per KM. Trust claims deduction. You dont get any deduction

 

Hi Paul

In the post quoted you mention 9th May but in a later post you say 1st of July . I was made to understand its travel expenses occurred after 1st of July are not claimable. kindly clarify. Thanks

 

30th June is the final data for travel deductions. I have edited my post for clarity.

 

Thanks Paul.

So should the log book be kept going for cost base at sale time for travel and related, I am thinking I will keep doing the same thing.

 

So I can book flights, acomm for trips next year as long as payment is before June 30 this year it's deductible?

 

I would say no unless you have a private ruling. Prepaying a expense that isnt legally permitted as deductible wouldnt be incurred.

A expense must be incurred. Not merely prepaid.