Private ruling: Work-related expenses
Date of advice: 3 December 2024
Published: 20 January 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to claim a work-related deduction for the expense incurred for the news article? | A1: No.

Relevant facts and circumstances: You paid $X,XXX.XX for an article to advertising company. The article focused on your personal profile and your ownership of XX investment properties. At the time of the article, you were not employed as a buyer's agent.

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

Reasons for decision: Summary: Expenditure incurred for advertising and marketing is deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) to the extent that it sufficiently relates to the production of assessable income. Taxation Ruling TR 98/6 states that real estate employees may spend money on advertising via newspapers, sponsorships and letter box drops and may also incur costs, such as signage and bunting, when advertising a client property or conducting an open inspection or display day. It is accepted that these expenses, incurred by real estate salespersons that are entitled to earn commission, have a direct connection to the process by which such salespersons earn their income. Such persons have considerable flexibility in deriving their income and can be distinguished from salespersons in receipt of a fixed salary. Accordingly, it is accepted that a deduction is allowable in these circumstances. | Detailed Reasoning - Application to your circumstances: In your case, you paid a fee to an advertising company to publicise your accomplishments as a property investor. The article focused on your personal story and portfolio of properties and states that you were preparing to start work as a buyer's agent. The article was completed prior to your employment as a buyer's agent and did not relate to the advertising of client's properties. Therefore, the expense incurred did not have a direct connection to gaining or producing assessable and the expenditure is considered to be private in nature and is not an allowable deduction under section 8-1 of the ITAA 1997.