Question: Can I Claim an expense paid or reimbursed by my employer? (Investment property series Q1)
Question: Can I Claim an expense
paid or reimbursed by my employer? (Investment property series Q1) Answer:
Normally If you are entitled to
claim tax deduction for an expense which has been reimbursed or paid by your
employer then it cannot be claimed by you as a tax deduction because your
employer will claim that as a tax deduction. Refer to S. 51AH Of the ITAA 1936 There are some exceptions to this rule under
which you can sacrifice your salary to get your employer to pay for an expense on
your behalf and then both you and your employer can claim a tax deduction for
the same expense. In the following cases, You and your employer both can claim
a tax deduction for the same expense: (Refer to former TD 93/145 and TD 2005/D17: Non-business
Income producing depreciable Asset:
If you buy a depreciable asset
costing less than $300 (E.G. a microwave for a rental property) and your
employer reimburse you for that under salary packaging arrangement, then you
can claim a deduction for that. Busin…