SMSF and allowable expenses

  1. 1,380 Posts.
    Hi there, I have a query which I don't think many will be able to answer, but just looking for anyone who has been in the same situation; looking for pointers for info etc.
    The ATO rulings are vague and generally unhelpful, so perhaps next step will be an accountant specialising in SMSFs.

    I have a SMSF, I am the sole member and my company, of which I am the director, is the trustee of the SMSF. Many SMSFs will be set up in the same way.

    My question is about allowable expenses incurred in managing the fund. I understand that as director, or as the company, I can't claim costs - ie , I can't claim a wage for acting as the trustee, for instance. If I were to, for instance, hold a substantial holding in a company (as in literally be a subst holder) and 'need' to attend the AGM, would that now be a legitimate deduction?

    Personally, I think the ATO rulings suggest that yes it probably would be - personally - but in a SMSF??? It gets murky. There is some info on the ATO website which suggests that a SMSF, like any taxpayer entity, is entitled to claim legitimate admin and investment expenses....

    and on that note, can anyone quickly tell me the difference between capital and revenue expenses.

    thanks in advance anyone !
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