Tax Deduction?

[phm]

Hi there.

We have bought our first IP.

We were looking in one town first up, and during this time, encountered two lots of solicitors expenses for fallen through contracts and a building inspection that showed faults. We then moved to another town and eventually purchased there.

Are the two lots of solicitor's expenses and the building inspection claimable as deductions on our property?

 

[DaleGG]

Hi

To the letter of the law, no, these costs are not tax deductible as the costs do not relate to an existing income.

However, the costs could be argued as a capital loss which could be used to offset any existing capital gains or future gains.

Dale

Originally posted by phm
Hi there.

We have bought our first IP.

We were looking in one town first up, and during this time, encountered two lots of solicitors expenses for fallen through contracts and a building inspection that showed faults. We then moved to another town and eventually purchased there.

Are the two lots of solicitor's expenses and the building inspection claimable as deductions on our property?

 

[phm]

Hello Dale.

Back from holidays and straight onto the forum. (I'm not an addict, am I?)

Thank you for your helpful reply.

 

[mross]

Dale,

just wondering if these expenses may be claimable as a "project pool" allowance under the category of 'obtaining project related information' under division 40.

I believe if the project doesn;t go ahead a deduction in the year of disposal may be available.

The only question is whether this expenditure qualifies?

Michael

 

[DaleGG]

HI Michael

Funny, a few people have asked similar questions. I do not believe that the costs do qualify.

Pity

Dale

Originally posted by mross
Dale,

just wondering if these expenses may be claimable as a "project pool" allowance under the category of 'obtaining project related information' under division 40.

I believe if the project doesn;t go ahead a deduction in the year of disposal may be available.

The only question is whether this expenditure qualifies?

Michael

 

[bundy1964]

Originally posted by DaleGG
HI Michael

Funny, a few people have asked similar questions. I do not believe that the costs do qualify.

Pity

Dale

Hi Dale simple question. Why not?

bundy

 

[watto]

Hi Bundy1964....

Better question.....How can we Dale?


Cheers
watto

 

[bundy1964]

I stand corrected..............lol

bundy