Development Feasibilty Fee Tax Deductible

[Gazz]

Hi,

I own an investment property (house and land - currently tenanted) and paid a fee to have a development feasibility undertaken to determine whether it is feasible to demolish the existing house and build three units on the site.

Is anyone able to tell me whether the fee I paid is;

a) Deductible in the year I paid it
b) Forms part of the capital cost base if I proceed with the development, or
c) Not deductible at all

Thanks for your help.

 

[Aaron_C]

it would form part of the capital cost base because you are not in the business of property development.

 

[Gazz]

Thanks Aaron