Prepaid expenses



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End of attention

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 $1000 or more-see Deductions for prepaid expenses.

Last modified: 18 Jul 2008QC 16578