I’ve Uncovered an Awesome Travel Tax Rort

Scott,

I am seeking confirmation of a tax rort that would help everyone who is looking to travel. Have I been living in a cave? I’ve recently been advised that if you can incorporate a personal/professional development component relevant to your job while on holidays and you can then claim part of it as a tax write-off. Example: a prison officer (me) travels overseas on holidays and visits Alcatraz and speaks to someone regarding their role and the differences we face, and this could be considered professional development. Is this right?

Dirk

Hey Dirk,

I’m guessing you got that tax advice from some of the white-collar crims you’re watching over, right?

Because it’s not correct.

First, you need to prove there is a direct connection between your job and the expense – and I highly doubt that having a yack to another screw in the States would cut it with the taxman.

Second, even if you can prove it, you’ll need to apportion it appropriately. In other words, you may be entitled to claim the cost of the entrance ticket to Alcatraz as a tax deduction … but not the $3,000 in international flights, accommodation and minibar.

Scott.

Following My Dream

Hi Scott,

I am trying to follow my dream of buying my own home before I turn 30, even though I am on an average wage. But my accountant recently put me in touch with his property advisory team and they are adamant I should buy an investment property (with their help) as a way to pay less tax. It has got to a point where I have started ignoring their calls as they just will not listen to me. Am I being too stubborn or am I doing the right thing?

Tash

Hi Tash,

Interesting predicament.

Here’s what I’d email your accountant (feel free to use it):

Dear Mr Accountant,

I’m breaking up with you and your firm, effectively immediately.

It’s not me, it’s you … and your salesmen mates who keep hassling me.

Seriously, they remind me of a desperado date I’ve been on before (I know they only want one thing, and they won’t take ‘no’ for an answer).

It’s all a little creepy and, dude, I just don’t need that from my bean-counter.

Regards, Tash

If you have an uncomplicated set-up (pay-as-you-go job, no investment properties), you should be able to complete your tax return with myTax through myGov. And if you need to maximise your deductions, check out the ATO’s myDeductions app.

Put the money you save towards your house deposit, not these clowns.

Scott.