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Edited version of private advice
Authorisation Number: 1051923303187
NOTICE
This edited version has been found to be misleading or incorrect. It does not represent the ATO’s view of the relevant law.
This notice must not be taken to imply anything about:
● the binding nature of the private advice issued to the applicant
● the correctness of other edited versions.
Edited versions cannot be relied upon as precedent or used for determining how the ATO will apply the law in other cases.
Date of advice: 24 November 2021
Ruling
Subject: Deductions - legal expenses
Question
Are you entitled to a deduction for legal expenses?
Answer
Yes. Based on the information provided to the Commissioner the legal expenses you incurred in relation to the TPD payment from the super fund is an allowable deduction under Section 8-1 of the Income tax Assessment Act 1997.
This ruling applies for the following period:
Year ended 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You received a TPD payment from a superfund after engaging a legal firm to assist you with the claim.
You were awarded a substantial amount from the TPD claim.
This amount was prefilled into your tax return as income from information reported by the super fund.
A portion of the monies was paid to a solicitor for legal costs.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1