I am currently working with a planner to create a 2 lot subdivision on an investment property that is currently rented out. The intent is that on completion of building the 2 properties they would be rented long term and not sold.
WIth the fees invoiced for the planner (circa $5k), are these deductible as an expense related to the property or are they capital in nature. I find it hard to see it as capital when I am paying for a service only, but on the other hand, I am paying for the service to improve the property, so I can see how it could go both ways.
Thoughts?
WIth the fees invoiced for the planner (circa $5k), are these deductible as an expense related to the property or are they capital in nature. I find it hard to see it as capital when I am paying for a service only, but on the other hand, I am paying for the service to improve the property, so I can see how it could go both ways.
Thoughts?
