What expenses can I claim?
Question from Jay updated on 26th February 2009:
Our expert responded:
You can claim any expenses under an LAQC that relate to the running of the business. For example, with a property investment business, you can claim expenses such rates, insurance, repairs and maintenance (R&M), accounting fees, property management fees and so on. It could also include travel costs outside of your home town if that travel is because you are looking for investment property to buy. The only expenses that can cause issues are R&M over $500. If the R&M is over $500 and it is just keeping something going, then that will most likely be a deductible expense. However, if it's lengthening the life of the asset, it will probably be a capital expense that is then put into your fixed asset register and depreciated over time at the appropriate rate.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.
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