Can I claim for my maintenance time through LAQC?

Question from leanne updated on 28th August 2009:

My husband and I have four properties in an LAQC, two of the properties being multi-tenanted. We spend a lot of time maintaining them ourselves. For example, last week I painted a new deck and stairs for five hours, after my husband had built them. Can we claim for any of the hours we spend maintaining our properties through the LAQC? If we wrote an invoice charging our time to the LAQC is this allowed? If so, what kind of hourly rate would we charge? thanks

Our expert Mark Withers responded:

Hi Leanne The answer to your question is..."Yes but". Yes, the cost you invoice the company is likely to be a deductible repair cost to the company but the invoice you have issued the company is also taxable income to you. This is what we call a circular transaction. ie You go round in a circle, create lots of paperwork for yourself and achieve, you guessed it....Nothing!

Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.



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