Are national travel costs tax deductible?
Question from Carron updated on 24th July 2008:
Our expert responded:
This is the sort of situation that needs to be closely considered with an accountant. Your issue is not so much the question of what to depreciate, but what your intention is at the time of purchase. At this time, your intention is to on-sell the property after a couple of years. On that basis, tax will be payable on any capital gain made. Another issue is that as your intention is to sell the property, the issue of tainting arises as you are doing this transaction through an LAQC where you will own the shares personally. Tainting has far reaching consequences, is something to be avoided, and needs advice particular to your circumstances. Costs such as travel and loan fees will be tax deductible.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.