New Travel rules for rental property!
From 1st July 2017 S.26 – 31, will deny any deductions for landlords expenditure in earning assessable income from residential premises if it is attributable to travel(of all types)
The new rules cover travelling to collect rent or to inspect or maintain the property
Costs cannot be recognised in the cost base of the Property – this means no tax deduction and no the expense incurred cannot reduce capital gains in the future.
The new measures will not prevent claiming a deduction where they engage third parties to provide property management services or commercial property landlords
Taxpayers who run a business can continue to claim travel – e.g legitimate B&B’s and businesses conducted a rental business . for guidance contact Geoff 9597 9966