| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012055367992
This edited version of your ruling will be published in the public register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.
Ruling
Subject: Rental property expenses
Question
Are you entitled to a deduction for expenses incurred in having a representative attend the hearing on your behalf?
Answer
Yes.
This ruling applies for the following period:
Year ending 30 June 2012
The scheme commenced on:
1 July 2011
Relevant facts and circumstances
You own a property.
Your spouse's name is not on the title of the property.
You and your spouse had lived together in the property since your marriage.
You moved interstate and began to rent out the property.
Your property was maliciously damaged by the tenants.
There was a hearing in relation to the damage.
You were unable to attend the hearing; your spouse attended on your behalf.
You paid for your spouse's travel expenses to attend the hearing.
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) 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, or relate to the earning of exempt income.
Rental property expenses are deductible under section 8-1 of the ITAA 1997 for the period the property is rented or is available for rent. Generally, the cost of travel to inspect or maintain a rental property is an allowable deduction under section 8-1 of the ITAA 1997 as it has been incurred in connection with gaining income from the investment property.
Similarly, travel expenses incurred in relation to attending legal matters involving a rental property would also be considered to be incurred in gaining or producing assessable income.
In your case you were unable to attend the hearing in relation to the damage caused at your rental property. You incurred expenses to have your spouse travel to the hearing as your representative. Even though it was your spouse who travelled to attend the hearing, it was you that incurred the expenses.
Accordingly, you are entitled to a deduction for the expenses under section 8-1 of the ITAA 1997.