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Self education and investment training.

Discussion in 'Accounting, Tax & Legal' started by nitro-nige, 3rd Jun, 2009.

  1. nitro-nige

    nitro-nige Well-Known Member

    Joined:
    8th Mar, 2007
    Posts:
    49
    Location:
    Reservoir, Melb
    If you undertake an investment training course can you claim it as self education?

    I got this of the ATO website

    Claiming self-education expenses
    What are self-education expenses?

    Self-education expenses are expenses that you incur when you undertake a work-related course to obtain a formal qualification from a school, college, university or other place of education.

    The course must have a sufficient connection to your current employment, that is, the course:

    * maintains or improves the specific skills or knowledge you require in your current employment, or
    * results in, or is likely to result in, an increase in your income from your current employment.

    You cannot claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current employment even though:


    Which kind leads me to think no?
    Is this correct?
    Are there other ways to claim the cost of attending/completing an investment course?
     
  2. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    Self education has to be connected with an existing income producing activity - it is not restricted to employment.

    Where you can show a connection between the investment course and your current investment income activity then you would have the connection.

    However, the course could be too remote where, say, someone with a passive share portfolio and a couple of IPs then enrolled on an intensive day trader course in the hope of branching out into a new career/occupation. The ATO could argue this was preliminary expenditure in equipping yourself for a new activity.

    Ongoing investment seminar expenses discussing market summaries would be a typical self-education expense of a passive investor.

    This could include travel, and even food where an overnight stay is required.

    Cheers,

    Rob
     
  3. nitro-nige

    nitro-nige Well-Known Member

    Joined:
    8th Mar, 2007
    Posts:
    49
    Location:
    Reservoir, Melb
    Length of time

    Thanks Rob

    Does it matter how long in advanced you were involved in the investment.
    For example if I had a share portfolio and wanted to branch out in CFD's. Could I buy a couple of CFD's and then a week or two later enroll in a course to learn about CFD trading and claim it as an expense?

    Nige
     
  4. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    The main problem is to convince the ATO that you have an income producing activity where CFDs are concerned.

    see http://www.invested.com.au/4/tax-cfds-34503/#post60873

    Where you are more actively involved in a range of investments such a day trading or more speculative transactions, and CFDs are merely a new aspect, then you could enrol on a course prior to starting to trade in CFDs.

    I was just warning that if this was a dramatic change in activity, the ATO could argue it is startup costs for a NEW income source.

    A couple of seminars would be pretty benign, but to attend an intensive diploma course at an institution after merely holding a couple of long term shares would be questionable.

    This is assuming that you are not starting up a business of trading.

    Cheers,

    Rob