Law Companion Ruling LCR 2018/7

The ATO has finalised its ruling on the rules that deny a deduction for travel expenditure incurred by investors in residential property.

Ruling on Travel Expense Deductions for Rental Property Investors

Travel expenses incurred in collecting rent and in connection with the maintenance and repair of a residential rental property held as an investment or to visit a property manager are not deductible from 1 July 2017 under s 26-31 of ITAA 1997. One of the exceptions to this rule allows the deduction where a taxpayer incurs the expense in the course of carrying on a business.

Given the recent changes contact us to discuss how these changes apply to your circumstances.

Source: CCH Tax Week Issue 41