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  • Prepaid expenses



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

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    If you prepay a rental property expense-such as insurance or interest on money borrowed-that covers a period of 12 months or less and the period ends on or before 30 June 2003, you can claim an immediate deduction. Otherwise, your deduction may have to be spread over 2 or more years under the prepayment rule if the expense is $1,000 or more-see Deductions for prepaid expenses.

    Last modified: 11 Dec 2019QC 16578