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1 Are you entitled to claim a deduction for funeral expenses under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?

1 No. This ruling applies for the following period: 1 July 20XX to 30 June 20XX The scheme commenced on: 1 July 20XX

You were solely responsible for paying for your parent's funeral. You received a superannuation death benefit on DD MM YYYY, which included: Taxed element of $XX,XXXX Tax free component of $X,XXX Total tax withheld of $X,XXX. The superannuation fund reimbursed you for the funeral costs of $XX,XXX.

Income Tax Assessment Act 1997 section 8-1 Issue Income Tax - deductions Question Are you entitled to claim a deduction for funeral expenses under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)? Summary No. Detailed reasoning An expense can only be deducted under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) to the extent that: •                     it is incurred in gaining or producing your assessable income (the positive test) and also meets the 'negative tests' that: ­                             the expense is not a loss or outgoing of capital or of a capital nature; or ­                             the expense is not private or domestic in nature; or ­                             the expense is not incurred in relation to gaining or producing exempt or