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Edited version of your private ruling
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Ruling
Subject: Funeral and accommodation expenses
Question:
Are you entitled to a deduction for the funeral and accommodation expenses?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2012
The scheme commenced on
1 July 2011
Relevant facts
Your adult child was very ill and after going overseas, they were not allowed to fly home.
They incurred expenses to stay overseas.
Your child passed away as a result of the illness and you incurred funeral expenses.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) broadly allows a deduction for any losses or outgoings to the extent to which they are incurred in gaining or producing assessable income except to the extent outgoings are of a capital, private or domestic nature.
While we accept that the costs involved in your child's stay overseas and funeral expenses were very high, the expenses were not incurred in producing your assessable income. Therefore, you are not entitled to a deduction.
Furthermore, there is no other section of the ITAA 1997 that allows for a deduction for the expenses you incurred.
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