Finally got round to lodging our Tax returns and we have a couple of investment properties which the accountant said she can't claim travelling as an expense to each property as the ATO deemed this so for the 2017/2018 financial year ….. Where do I find these rulings ?
Haha - this! Literally the first line on the ATO page relating to OP's issue states the answer.
do you think your accountant would be denying you a deduction lol, most accountants are trying to find deductions for you even if those deductions dont exist.
and secondly, you could have asked your accountant about the ruling lol thats why you're paying them
the accountant said she can't claim travelling as an expense to each property as the ATO deemed this so for the 2017/2018 financial year
That's correct. It's a change that came in for the most recent tax year. Was all over the news when that happened too. The above ATO link is a good summary, but if you want to dig deeper, more links here:
https://www.ato.gov.au/general/new-legislation/in-detail/dir…
And the draft ruling here:
http://law.ato.gov.au/atolaw/view.htm?docid=%22COD%2FLCR2018…
(Note: It's only a draft because the law was yet to be passed at that time - so this is the ATO saying: This is how we plan to interpret the new laws. It's not really any less binding as a result.)
Federal budget 2017: Five housing changes to know about
Not so much as a ruling, but a Budget initiative.
The government has ruled them out, even for those travelling to collect rent, maintain or inspect a premises, saying many have been incorrectly obtaining this deduction.
Thank you for your help everyone.
Any accountants here care to comment on the feasibility of opening a "business" (not even a company, just an ABN) that's in property management and that happens to just manage one (or a few) properties that you also own? Would that count as a "business" for which travel expenses are deductible, despite the new residential investment property exemption from being able to deduct travel expenses?
sounds like a slam dunk tax evasion case for the ATO.
That would be quite a long stretch to claim interstate travel and accommodation.
But wouldn't that also mean, if you are engaging in the business of property management that you would need to be licensed under the Property Stock and Business Agents Act for it to be legitimate?
really? that is very bad ruling for investors
Not really that big of a deal; I've seen hundreds of rental properties in tax returns and most have no genuine travel claims of note. Its the short term managed apartments which tend to be interstate and get week long inspections by the owners whole family, that will really notice the lack of being able to claim travel. Some genuine travel claims will go begging but in my experience the vast majority are not genuine or are negligible amounts.
https://www.ato.gov.au/General/Property/In-detail/Rental-pro…