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  • Apportionment of travel expenses

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Where travel related to your rental property is combined with a holiday or other private activities, you may need to apportion the expenses.

    If you travel to inspect your rental property and combine this with a holiday, you need to take into account the reasons for your trip. If the main purpose of your trip is to have a holiday and the inspection of the property is incidental to that main purpose, you are not entitled to a deduction for the cost of travel. However, you may be entitled to claim local expenses directly related to the property inspection and a proportion of accommodation expenses.

    Example
    Apportionment of travel expenses

    The Johnsons also owned another rental property in a resort town on the north coast of Queensland. They spent $1000 on airfares and $1500 on accommodation when they travelled from their home in Perth mainly for the purpose of holidaying in the resort town, but also to inspect the property. They also spent $50 on taxi fares from the hotel to the rental property and return. The Johnsons spent one day on matters relating to the rental property and 9 days swimming and sightseeing.

    No deduction is allowable for any part of the $1000 airfares.

    The Johnsons can claim a deduction for the $50 taxi fare.

    A deduction for 10 per cent of the accommodation expenses would be considered reasonable in the circumstances. That is, Mr and Mrs Johnson can each claim a deduction of $100-a total of $200-as shown below.

    $50 + $150* = $200

    *$150 = 10% x $1500

    Last modified: 28 Jul 2003QC 16187