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Travel expenses

Discussion in 'Accounting, Tax & Legal' started by SydneyCider, 13th Oct, 2005.

  1. SydneyCider

    SydneyCider Member

    15th Aug, 2005
    Couldn't seem to find an answer on the ATO site or Somersoft, so thought I'd try the experts here.

    When is it possible to start claiming travel expenses for a property ?

    1) From the time the offer is made / contract signed
    2) From settlement date
    3) After it has been tenanted

    I guess the specific question would be if I flew to the property a day or so before settlement for the inspection, is this immediately claimable or is it added to the cost base for CGT ?

  2. NickM

    NickM Co-founder Staff Member

    20th Jun, 2005
    Hi Sydney Cider

    ATO ID 2003/771 is in relation to travel costs relating to the acquistition of an IP. These costs do not even form part of the CGT cost base.

    The general rule is that the property must be rented or available for rent in order to claim a deduction.

    If you had several properties in say Brisbane then you could inspect an existing property as well as the new property thus enabling a deduction to be claimed.