Accounting / Tax question

Question for all the number crunchers on the Forum:

Say I start proceedings on a property deal and go some way down the path but eventually pull out of the deal. If I incur any costs without actually buying, are those costs tax deductible?

The reason I ask is that I have an accountant telling me that because there is no property to place those costs against, they are NOT deductible (in my case they are some minor legal costs that I incurred just before the deal went unconditional). Because I pulled out before the final deadline I got all my deposit back, but still have to pay the legal beagles.

I would have thought that even without a property to claim that cost against, they are a general cost of investment and therefore legitimate. :confused:

I welcome any constructive opinions.

Pedro
 
Question for all the number crunchers on the Forum:

Say I start proceedings on a property deal and go some way down the path but eventually pull out of the deal. If I incur any costs without actually buying, are those costs tax deductible?

The reason I ask is that I have an accountant telling me that because there is no property to place those costs against, they are NOT deductible (in my case they are some minor legal costs that I incurred just before the deal went unconditional). Because I pulled out before the final deadline I got all my deposit back, but still have to pay the legal beagles.

I would have thought that even without a property to claim that cost against, they are a general cost of investment and therefore legitimate. :confused:

I welcome any constructive opinions.

Pedro

That is correct. Not deductible as it does no relate to the production of any income.
 
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