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ASX_Wanderer(Initiate)Initiate
24 Apr 2024

  • I live in NSW
  • Construction of investment property in WA completed. I had to travel to WA to attend key handover and to complete rental mgt agreement.
  • Can I claim return airfare, accommodation for 2 nights and food expenses during this short business travel?
  • 100% business travel
  • Pls advise if I can claim or need to add the travel expenses to the cost base.

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3 replies
1,895 views
3 replies

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Most helpful reply

YEP(Devotee)Devotee
24 Apr 2024

@ASX_Wanderer


Rental property travel expenses even inspections are not an allowable deduction, as specific legislation was enacted a few years ago,

the only exceptions are :

  • using the property in carrying on a business (including a business of letting rental properties) in other words your renting out many properties and it is your main or major source of income, or
  • you are an excluded entity.

https://www.ato.gov.au/forms-and-instructions/rental-properties-2023/rental-expenses


unfortunately taxpayers abusing "rental property travel expenses" has now impacted everyone else.

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Most helpful reply

YEP(Devotee)Devotee
24 Apr 2024

@ASX_Wanderer


Rental property travel expenses even inspections are not an allowable deduction, as specific legislation was enacted a few years ago,

the only exceptions are :

  • using the property in carrying on a business (including a business of letting rental properties) in other words your renting out many properties and it is your main or major source of income, or
  • you are an excluded entity.

https://www.ato.gov.au/forms-and-instructions/rental-properties-2023/rental-expenses


unfortunately taxpayers abusing "rental property travel expenses" has now impacted everyone else.

ASX_Wanderer(Initiate)Initiate
24 Apr 2024

Thanks for your support. There is no mention if I can add the travel cost to the cost base to calculate CGT when selling the property!

YEP(Devotee)Devotee
25 Apr 2024

Travel expenditure for rental properties does not form part of the cost base for CGT purposes ....


This has been the case even before the current legislation that excludes rental property travel expenditure as a deduction.


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