Ever Wondered What The Answer Was?

Can income tax deductions be claimed for overseas travel costs (other than meal costs)?

Income tax deductions can be claimed for overseas travel costs (other than meal costs) but only to the extent that they have a connection with deriving assessable income or carrying on a business.

Income tax deductions cannot be claimed for any part of the costs that are of a private or domestic nature, of a capital nature, or incurred in deriving exempt income or income from employment. If the costs need to be apportioned between deductible and non-deductible amounts, then this must be done on a basis that is reasonable in the circumstances.

These are new guidelines issued on this topic just recently by the Inland Revenue Department.