Private ruling: Advertising
Published: October 2014
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a deduction for the cost of advertising and promoting yourself? | A1: Yes. | Q2: Are you entitled to a deduction for the decline in value of building, printing, layout and erecting signs? | A2: 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 (ITAA 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, you are entitled to a deduction for the cost of setting up social media and web site pages, photography and creating imaging, marketing campaigns, writing copy and letter box drops. | Detailed Reasoning - Signs: Section 40-25 of the ITAA 1997 allows a deduction for the decline in value of a depreciating asset to the extent that it is used for a taxable purpose. A taxable purpose includes the purpose of producing assessable income. A sign is considered to be a depreciating asset. The cost of holding the asset includes the cost of having the signs built plus the cost of the actual sign and the erection of the signs. Therefore, you are entitled to a deduction for the decline in value of the signs.

Relevant facts: You are a real estate agent working only on commission. | You have incurred expenses for advertising and promoting yourself including: | • Set up social media and web site pages | • Building, printing, layout and erect signs