Announcements
Are you a tax professional needing a bit more time to lodge? Check out how to apply online for a deferral, or ask the Community!

ATO Community

Re: Eligibility for prepayment deductions

Newbie

Views 124

Replies 1

Hi there,

 

I am trying to understand the eligibility of claiming prepaid costs for an investment property beyond the examples on the ATO website. Can I pay a property cost prior to being invoiced so I am in credit next FY?

 

As an example we get charged council rates quarterly (~$320/qtr). Can I pay the next 4 quarters before June 30? If so what evidence is needed to support this - is the payment & receipt sufficient or is an invoice for the amount required?

 

Thanks!

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @Kfall,

 

I really appreciate the research you've done.

 

In the example you've provided, you'll be able to claim the deduction.  It falls under the 12-month rule.

 

Keep the receipt as proof of payment as per keeping business records requirements.

 

 

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Kfall,

 

I really appreciate the research you've done.

 

In the example you've provided, you'll be able to claim the deduction.  It falls under the 12-month rule.

 

Keep the receipt as proof of payment as per keeping business records requirements.