Answer to Question #158390 in Economics for sandeep

Question

Celine is a university lecturer and a property investor. She works at Wentworth Institute in the morning teaching her students in accounting and taxation laws. At lunch time she takes a train from Central Station to another university where she is teaching in Business Law. At the end of the day, she takes the train home. On the weekend she drives to her rental property in Central Coast to oversee the renovation and maintenance with her husband. The rental property will be available for rent and generate rental income once the renovation is completed. At the end of the day, Celine drives home.

Advise Celine as to the tax deductibility of the train fares and the travelling expenses to her rental property.

Answer 1

Celine can only claim for the cost of travelling to your property if the journey is undertaken wholly and exclusively for the purpose of earning rental income from the property.