Question: Can I Claim an expense paid or reimbursed by my employer? (Investment property series Q1)

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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.
Business Income producing depreciable Asset:
If you buy a depreciable asset costing less than $20,000 (this limit may change from 01/07/2019) for your small business which you are doing in addition to your employment (E.G. a ute of $18,000 to be used 100% for business) and your employer reimburse you for that under salary packaging arrangement, then you can claim a deduction for that.










Disclaimer: Any information in this article is of general nature only. Any person should, before acting on the content, consider the appropriateness of it having regard to their own personal circumstances, and if necessary seek professional advice. J.A.P TAXATION and its employees or any related entities, do not accept any liability for any loss, damages or outgoings rising out of the use of all or any part of information provided in this article.
 



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