Can we reduce our tax by prepaying for travel this FY 2005

dvmcl54 · #1 (**permalink**) 7th June 2005, 10:28 PM

Greetings
Can one use the Qantas Charge card or Amex Qantas Corporate Card to prepay this Financial year FY by depositing what I would estimate will be my travel expense for the year into this or other cards to reduce my tax and so when I book a flight etc I still save on costs and also earn QFF and cna reduce my gross profit?

No need for professional opinions just general direction
Thanks
dvmcl54

ronone69 · #2 (**permalink**) 7th June 2005, 10:33 PM

A simple reply:

If you book and pay for tickets in cash or on your credit card and pay the balance in cash before 30 June and you prepare your tax return on a cash basis, the amount you pay is deductible in the year you pay it ie this year even if the travel is next year.

If you deposit some money on your credit card in anticipation of future travel, this is not deductible. This is like taking money from one bank account and putting it in another.

No arm asking though

Lindsay Wilson · #3 (**permalink**) 8th June 2005, 06:19 PM

Disclaimer: I am not a registered Acountant, who should be the person to whom you ask the question...

I used to do that - but it was always for bookings that I was looking to ticket and pay for in the current FY, for travel in the next FY. Was handy when they were J RTW's....(which I used to take in August) or my sole F RTW.

Alas, no more :cry:

NM · #4 (**permalink**) 9th June 2005, 01:37 AM

Having charged $26,000 worth of airfares to my credit card this week I wish I could claim it as a tax deduction. But alas its all company travel, and $10,000 is to be refunded after the need to cancel a DONE4 fare and rebook as a J return plus a DONE3 (about $16,000 cost). That is my most expensive trip ever - 3 weeks and 19 sectors split across two tickets (one paper and one e-tix).