Private ruling: Funeral and accommodation expenses
Published: November 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for the funeral and accommodation expenses? | A1: No.


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 (ITAA 1997) broadly allows a deduction for any losses or outgoings to the extent to which they are incurred in gaining or producing assessable income except to the extent outgoings are of a capital, private or domestic nature. While we accept that the costs involved in your child's stay overseas and funeral expenses were very high, the expenses were not incurred in producing your assessable income. Therefore, you are not entitled to a deduction. Furthermore, there is no other section of the ITAA 1997 that allows for a deduction for the expenses you 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 adult child was very ill and after going overseas, they were not allowed to fly home. | They incurred expenses to stay overseas. | Your child passed away as a result of the illness and you incurred funeral expenses.