Travel, repairs, cost base

Discussion in 'Accounting & Tax' started by dabbler, 5th Apr, 2017.

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  1. dabbler

    dabbler Well-Known Member

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    Another travel question.

    If your not formally considered as running a professional IP business, and your traveling a lot to do initial repairs and clean up etc prior to initial letting, using a vehicle that is in one spouses name but is essentially owned by both (paid for by a joint account).

    Can that travel be recorded and lumped into the cost base ?

    If the work/travel is sometimes only one spouse who is not on title, but on the same property ?

    How is this normally seen or dealt with do you believe.
     
  2. Paul@PAS

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

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    Yes it may. The non owner spouse costs may not be deductible but reasonable methods can be used. eg there is no extra cost for the spouse to be in the car or the rented room etc. Claim 100% provided the sole and exclusive purpose for the travel relates to that initial repair purpose.

    I generally recommend delaying the QS report and when costs of works are known you take before and after pics and cost details to the QS and they will advise the best method for writing off those costs in the QS report.