ATO Interpretative Decision

ATO ID 2001/377 (Withdrawn)

Income Tax

Air conditioner for retirement village home unit
FOI status: may be released

This ATO ID is withdrawn as it is a straight application of the law and does not contain an interpretative decision.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.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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

Related ATO Interpretative Decisions
ATO ID 2001/374

Keywords
Deductions & expenses

Business Line: Small Business/Individual Taxpayers

Date of publication: 29 September 2001

ISSN: 1445-2782

history

	Date:	Version:
	13 June 2001	Original statement
You are here	6 June 2008	Archived

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