A few clients have done some property investment courses and the promoters have been telling them that the fees are 100% deductible.
Would like to refer people to ID 2003/324 http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2003324/00001
Had a client who owns NO investment properties being told the course was tax deductible. Interesting that ID 2003/324 states "This expenditure does not have the essential character of expenditure incurred in gaining or producing assessable income. Accordingly, as this expenditure is not incurred in gaining or producing assessable income no deduction is allowable under subsection 8-1(1) of the ITAA 1997"
In other cases apportionment of the course fee may be necessary.
Beware people giving tax advice who are not registered tax agents.
Would like to refer people to ID 2003/324 http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2003324/00001
Had a client who owns NO investment properties being told the course was tax deductible. Interesting that ID 2003/324 states "This expenditure does not have the essential character of expenditure incurred in gaining or producing assessable income. Accordingly, as this expenditure is not incurred in gaining or producing assessable income no deduction is allowable under subsection 8-1(1) of the ITAA 1997"
In other cases apportionment of the course fee may be necessary.
Beware people giving tax advice who are not registered tax agents.