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.
I welcome any constructive opinions.
Pedro
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.
I welcome any constructive opinions.
Pedro