Private ruling: Rental property expenses
Published: October 2012
Ruling period: Year ended 30 June 2009
Date scheme commenced: 1 July 2008

Ruling: Q1: Are you entitled to a deduction for the cost of accommodation and fuel? | A1: Yes.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 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. In your case, the cost of fuel and accommodation that you incurred for your parent to attend your rental property are considered to be incurred in producing the assessable income from the rental property. Therefore, you are entitled to a deduction for the expense incurred.

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. | Relevant facts: Your parent visited your rental property on a number of occasions to inspect, attend to repairs and for meetings with agents while you were overseas. | Because of the distance from your parent's home, they were required to obtain accommodation for the night close to the property. | The costs for accommodation and fuel were deducted from your bank account by your parent.