Issue
Is the taxpayer entitled to claim a deduction for mobile phone call costs incurred in accessing live market share prices under section 8-1 of the Income Tax Assessment Act 1997 ('ITAA 1997')?
Decision
Yes. The taxpayer is entitled to claim a deduction under section 8-1 of the ITAA 1997.
Facts
The taxpayer is carrying on a business of share trading.
The taxpayer uses a mobile phone to access live market share price information. This information is then used by the taxpayer to make buy, hold and sell decisions in respect of his share trading business.
Reasons for Decision
A deduction under section 8-1 of the ITAA 1997 is allowed for outgoings to the extent that they are incurred in gaining or producing assessable income or in carrying on a business for that purpose, except to the extent that the expense is of a capital, private or domestic nature or incurred in gaining or producing exempt income.
The taxpayer uses a mobile phone for the purpose of obtaining live market share price data. The taxpayer uses this information in making buy, sell or hold decisions in respect of the shares that are held or that are proposed to be purchased by the share trading business. Accordingly, the mobile phone call costs are regarded as being incurred for the purpose of producing assessable income.
The taxpayer is entitled to claim a deduction under section 8-1 of the ITAA 1997 for the cost of mobile phone calls that have been made in respect of the share trading business.