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.
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
