Deductability of subdivision.

[possumcreek]

Just wondering if the cost of draftperson plans and plan of subdivision (surveyor) are tax deductable now or become part of cost base?

 

[matto_]

I assume cost base - but will be interested to see what those in the know say.

 

[Terry_w]

If you are doing a sub-division it probably won't fall under the capital gains tax regimen but income tax.

 

[Aaron_C]

Yes as Terry points out it depends if it is on revenue or capital account.

 

[possumcreek]

If you are doing a sub-division it probably won't fall under the capital gains tax regimen but income tax.

Thank you for your answers.

So do I understand you right, that the cost is claimed as a tax deduction against income in the year it is paid?

 

[Terry_w]

Thank you for your answers.

So do I understand you right, that the cost is claimed as a tax deduction against income in the year it is paid?

Yes, possibly.

 

[possumcreek]

Yes as Terry points out it depends if it is on revenue or capital account.

Sorry Aaron I'm not sure what you are saying here.

 

[Terry_w]

Capital gains only applies in certain situations such as when you buy a property on the hope that it increases in value.

In other situations such as developing normal income tax will apply.

So depending on your situation CGT may not apply but income tax will, or vice versa.