ATO Interpretative Decision
ATO ID 2001/377 (Withdrawn)
Income Tax
Air conditioner for retirement village home unitFOI status: may be released
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This ATO ID is withdrawn as it is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Can the taxpayer claim a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for expenses incurred in purchasing an air conditioner for their home unit?
Decision
No, the taxpayer cannot claim a deduction under section 8-1 of the ITAA 1997 for expenses incurred in purchasing an air conditioner for their home unit.
Facts
The taxpayer purchased an air conditioner for their home unit which is located in a retirement village.
The taxpayer intends to leave the air conditioner in the home unit as a gift to the retirement village when they vacate the unit.
Reasons for decision
Section 8-1 of the ITAA 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature.
The taxpayer did not incur the expense of purchasing the air conditioner in connection with gaining or producing assessable income. The expense is also private or domestic in nature.
The taxpayer is therefore not entitled to a deduction under section 8-1 of the ITAA 1997 for the expense incurred in purchasing the air conditioner.
Date of decision: 13 June 2001
Legislative References:
Income Tax Assessment Act 1997
section 8-1
ATO ID 2001/374
Keywords
Deductions & expenses
ISSN: 1445-2782
| Date: | Version: | |
| 13 June 2001 | Original statement | |
| You are here | 6 June 2008 | Archived |