General Costs



From: Russell H

if I spend money in my search for property - eg, seminars, valuations (on properties I didnt buy) revaluations for determining capacity, etc can i claim these as a deduction in that year?

any other comments along these lines?

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Reply: 1
From: J D

I am no guru but I believe costs prior to purchase (of initial IP) are NOT tax deductible (borrowing expenses over loan term excluded); you have to be receiving rental income i.e. S51(1) ITAA. Valuations on properties you didn't buy arn't tax deductible unless you are in the business of property trading.
Re-valuations on existing IP's would be deductible as you own an IP and are receiving rental income; an expense is deductible if incurred in gaining assessable income.
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