Travel expenses on investment properties

Investment Property owners need to be aware that from 1 July 2017, you cannot claim travel expenses relating to a residential investment property.

A residential property is land or a building that is:

  • occupied as a residence or for residential accommodation
  • intended to be occupied, and is capable of being occupied, as a residence or for residential accommodation.

Under the new rules, you can no longer claim any deductions for travel costs you might incur relating to your investment property unless you have a business letting rental properties or are an excluded entity.

Also, travel expenditures cannot be included in calculating the cost base on any capital gain or loss when you sell the property, as was the case previously.

If you would like to know more about these changes please get in touch. You can also visit the ATO website for more information.

DISCLAIMER: The above is general advice only, you should not act on this advice without consulting a professional adviser to discuss your personal circumstances.