Deductions

[phm]

Hi there.

I remember reading that the costs associated with attempting to buy IP are tax deductable. What happens if you spend this money in one financial year but don't buy an IP until the next financial year? Can you still claim the expenses involved in trying to find the IP in the first financial year?

 

[DaleGG]

Originally posted by phm
Hi there.

I remember reading that the costs associated with attempting to buy IP are tax deductable. What happens if you spend this money in one financial year but don't buy an IP until the next financial year? Can you still claim the expenses involved in trying to find the IP in the first financial year?

Hi

If you buy the property in your own names, then NO the costs of finding th eproperty are not tax deductible BUT they can be added to the purchase cost for CGT purposes.

If the properties are bought within a trust then it is distinctly possible that the costs could be tax deductible.

Have fun

Dale