The ATO has stated there is some practical difficulty in denying such deductions as paying a tax debt is not capital in nature nor was used to gain exempt income. This is what the regulation says: Subsection 51(1) of ITAA36 provides that: “All losses and outgoings to the extent to which they are incurred in … More Can the interest from borrowed money be tax deductible?
Foreign owners of residential dwellings in Australia are required to pay an annual vacancy fee if their dwelling is not occupied or rented out for more than 183 days (six months) in a year. The vacancy year starts when the owner first held interest in the dwelling and the vacancy fee is paid 30 days after … More Annual fee for foreign residential owners
If a person claimed GST credits for property purchases they now use to make input-taxed supplies, they have to report adjustments for this change in creditable purpose in their activity statement. A person needs to make an increasing adjustment on their BAS if they had purchased a property sell but now are renting it out. … More Change in Creditable purposes
These tax loss deduction denials are specifically targeted towards Business owners. Although they might love the idea of absorbing a business loss as a tax deduction, the ATO can disallow such deductions. One of the criteria is if during the relevant income year the business attempting to make such a claim earned assessable income (or realised … More Tax Loss Deduction Denials
Travel these days are so much easier and frequent for work and business related purpose. A travel allowance is payment to employee to cover for food, drink, accommodation or incidental expenses while they travel away from their home overnight or longer to do their work. In most situations of claiming other deductions, a taxpayer will … More I want to claim travel expense deduction but what is travel allowances?
The rate for the FBT year from 1st April 2017 to 31 Mar 2018 has reverted to 47%. ATO has flagged that it will be keeping an eye out for more than incorrect rate being used. There are several areas of concern for the upcoming FBT season that practitioners can prepare for. Living-away-from-home allowance A … More FBT 2018: the ATO’s top 5 triggers
Recently there were some changes made to deductions of travel expenses available to landlords when making inspections of the property. The ATO website states from 1 July 2017, travel expenses related to residential investment property is not deductible. In a recent Tax Wrap podcast there was a question raised regarding a man attending a Annual … More Property inspection travel deductions
Eligible investors who buy shares at an early stage of a start up company is entitled to carry-forward tax offset of 20% of the qualifying investments they have made. There are different caps for sophisticated investors and non sophisticated investors. There is Capital Gains Tax relief also available. There are some criteria to qualify as … More Tax incentives for investors in start-ups
Benefits associated with Christmas for employees: Christmas Parties Gifts to employees Cash bonus A FBT (Fringe Benefit Tax) tends to apply to an employer when they provide a benefit to an employee or their associate. If the FBT liability is otherwise deductible then the liability can be totally or partially eliminated. Benefits related FBT are … More Christmas and tax
Generally, gambling with the exception of limited circumstances has not been taxable or tax deductible. There were cases such as Evans vs Federal Court of Australia where the court found that even though tax payer gambled frequently, it did not fulfil the criteria of carrying on a business. The criteria was that it had to … More Taxing in Gambling