Subdivision costs deductibility??

Hi to all. Currently near the end of my subdivision for my 2 IP's (they were originally on one title), and was wondering whether the subdivision costs would simply be classed under capital expenditure or repairs to IP for tax purposes.

Also I am in the process of refinancing the IP's, and was wondering whether any refinancing costs would be tax deductible.

Had a search of the forum but couldnt find much for either topic.

Thanx.
 
Depends whether you are operating on a revenue or capital account, by the sounds of it you are just investing and not operating a business, meaning you are on a capital account

If thats the case, subdivision costs should be capitalised because your main goal by subdividing is to improve the value of your property

If you are just refinancing an existing loan than the charges involved in that will be tax deductible over 5 years or over the term of the loan, whatever is the shortest
 
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