Can I Claim Travel Expenses from ATO to Visit my Rental Home?
As an owner of a rental house, you don’t just have to collect rent and pay mortgages. But you also have to visit the property for inspections, meet tenants, and work with the property manager. Also, you have to make arrangements for necessary repairs and deal with maintenance issues. Now the question arises: are you entitled to claim Travel Expenses Rental Property Wollert? However, the actual answer depends on several circumstances, as you cannot just claim travel to a residential rental property. There are important exemptions, and getting the claim wrong can trigger an ATO audit. So, this handy guide by Kirpa Tax Accounting Firm can help you understand it completely.
Referring to the Law Amendment on July 1, 2017
Before the year 2017, investors could deduct travel expenses for collecting rent, inspecting, and maintaining as a standard deduction. On 1 July 2017, the federal government amended the law to stop investors from claiming expenses associated with residential rental properties. ATO made it clear that if you are an individual investor, you cannot claim expenses incurred for traveling. Below are the bans that are imposed by the ATO.
- Driving to Rental Estate for Inspection
- Flying Interstate to Inspect Property
- Traveling to Meet your Property Manager
- Traveling for Collecting Rent and Keys
- Car Hire, Meals, and Accommodation during Trip
It doesn’t matter if you travel locally or fly from Melbourne to Perth. If you are an individual investor, you cannot deduct the expenses mentioned above.
Legal Alternatives to Claim ATO Investment Property Deductions Wollert
You can’t deduct your own travel expenses for a rental property doesn’t mean that you lose money. There are ATO-compliant ways that can allow you to make legitimate deductions as mentioned below.
- Hire a Dedicated Property Manager
You can consider hiring a property manager to claim 100% expenses. It covers the fees charged by the property manager, inspection charges, cost of mileage they charge. For example, if your property manager charges 100 AUD for inspection, you can claim it. This is quite safe to claim your own travel expenses for inspecting the property.
- Hire a Local Tradie for Repair
Among Rental Property Expenses Wollert, this is the most important consideration to take into account. Instead of visiting for repair, you can consider hiring a local tradesperson. For example, rather than flying from Melbourne to Brisbane for fixing leaking taps, get it repaired locally. You can claim the invoice, call-out fee, and deduct repair charges.
- Claim the Repair, not the Trip
You may decide to visit the rental for paintwork but cannot claim the cost for it. For example, flying to Adelaide from Melbourne, hotel, and meals are not deductible. What you can deduct is the cost you have incurred for paintwork of the rental building. You can file a claim for paint and brushes.
Consult Professionals for Personalised Tax Advice
As a general investor, you can’t claim travel expenses to visit your property. In case of commercial or business properties, rules may differ. Thus, consulting a Property Tax Accountant Wollert is key to make the right move. Kirpa Tax navigates your circumstances and ensures you have claimed entitled deductions.
FAQ’s
Can I claim petrol for traveling to my residential rental?
Travel expenses incurred from 1 July 2017 are not deductible for investors. So, you cannot claim charges for petrol while traveling to your rental.
Can I deduct airfare for inspecting my rental house?
Airfare Travel Expenses Rental Property Wollert are not deductible as per rules. Exemptions can apply depending on the type of property and travel circumstances.
Is it possible to claim accommodation for visiting the rental house?
For ordinary travel by a residential investor, accommodation is not claimable. ATO Investment Property Deductions Wollert for accommodation may apply for commercial properties.
Can I claim expenses incurred for collecting rent of property?
Collecting rent is related to rental property income, which may be deductible. But it is treated differently depending on travel circumstances.
What if I inspect rental and go on holidays?
You should apportion the private component of your travel for inspecting the rental. Only claim Rental Property Expenses Wollert related to an income-producing cause of traveling.
What if I claimed the deductions wrong for rental house?
You may have to pay a penalty to the ATO on wrong claiming expenses. If repeated, it can trigger a full ATO audit for 2-4 years back returns.
Should I consult with an expert property tax accountant?
A tax professional at Kirpa Tax can assess your circumstances to render the best advice. Property Tax Accountant Wollert can prevent you from filing wrong claims.