I have taken on a client who is currently starting a property investment business, e.g. buying dilapidated properties, renovating them and then letting them out to generate rental income.
He recently attended a seminar about property investing which is also an opportunity to network with mortgage brokers, conveyancers, etc. as well as listen to professional property investors talking about investment strategies. I'm trying to work out if the cost of attending this seminar can be claimed as a business expense.
This seminar may fall under the heading of 'training' as the professionals were teaching investment strategies. I believe that the cost of training for a sole trader is allowable only if it 'upgrades' existing skills and does not give you brand new ones. However my client purchased his own property years before attending this seminar so he already knew how to buy a property and deal with brokers, conveyancers, etc. before attending the seminar. He's just using these existing skills to start a new business. Would the seminar be seen as a 'refresher' of existing skills or is the fact that the skills are being used to start a new business seen as something new?
I'm not sure where to draw the line so I'd be interested in hearing opinions on this if anyone can shed a light. :o)
Thanks.
Fabs
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The reason that 'refresher' of existing skills is allowable is because it is normally a requirement to do the "refresher" to maintain a particular qualification, membership of a professional body, or due to a change in legal requirement. A "nice to have or do" does not count.
Also the key word here is "investment"..... when it come to considering which rules to follow.
-- Edited by YLB-HO on Tuesday 15th of November 2011 04:03:32 PM
