Private ruling: Rental deductions - annual subscription fees for rental mentoring program
Date of advice: 11 June 2020
Published: June 2020
Ruling period: Year ending 30 June 2018 | Year ending 30 June 2019
Date scheme commenced: 1 July 2017

Ruling: Q1: Are you entitled to a deduction for your share of annual fees paid in relation to rental property advice? | A1: Yes. The annual fees are deductable under Section 8-1 of the Income Tax Assessment Act 1997 as they are related to the earning of your assessable income.

Relevant facts and circumstances: You and your spouse own rental properties. You and your spouse have paid fees to a company for assistance with your rental properties. The company does not sell properties. This program is designed to assist people with their rental properties in terms of increase in rental income, reducing running costs in relation to the rental properties as well as providing advice on how to structure their finances in relation to the properties. The program offers one on one mentoring sessions on a regular basis, regular webinars, access to other investors for discussions and access to finance brokers and solicitors. The program enables you to make decisions on how best to structure your investments, how to structure lease agreements and other practical skills. You have had some success with an increase in rent from one of your properties which went from a holiday home to an Airbnb. The program was $XXXX in the 2018 income year and reduces each year to $XXXX in the 2019 income year.

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