I intended to buy a property, had Pest/building inspections done and have to pay some solicitor’s costs for searches etc.
Then the pest report made clear that the house had live termites problems.[8]
I cancelled the purchase coz I’m not very fond of termites[V]
So can I claim these incurred costs, even if I did not end up buying the property?
Does anyone know for sure, I’ve been getting confusing information about this from friends.
I guess you can only claim any costs if you end up buying the property?Celivia, I don’t know. I would think not, but the best person to ask is an accountant or the tax office. Friends will only have opinions, as I have [
]Cheers
MelHi Celivia,
Like Mel – I don’t think so either – but it may depend on how many IPs you own.
It may be possible that someone recognised by the ATO as ‘being in the business of investing in property’ may be eligible – but I think not.
Definitely one for your accountant.
Derek
Hi Celivia….long time no G’day….
An experndure incurred in the pursuit of income is tax deductible.
If you got 2 reports and walked away…. then another report on a third property that you ended up purchasng I feel sure that you can claim all three…. remember that all costs in the persuit of income is tax deductible.
I believe you have a ligitimit claim for all Reports
Cheers
Billfromoz
Bill O’Mara
Thank you Mel, Derek and Bill for your replies. Wow hope you’re right Bill, I think when we get a bit closer to the end of financial year, I might give the ATO a ring to make sure and post their answer here.[
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Glad you’re back Bill, always enjoyed your posts.I would say that it is a ‘capital’ cost, and therefore only deductible from the sale price when you sell – and seeing as no property was bought, I still think the answer would be no. Along the same lines as a trip to purchase an IP is not claimable – unless it is your ‘business’ – and have fun convincing the ATO of that!
Cheers
MelHi
I had the same thing happen to me last year.
My accountant did some research and said I definitely COULDN’T claim ANY of the costs. As Mel just said, the costs are capital in nature not expense related
Sorry.
I could be worse though. I’m grateful that the soliciters Body Corporate searches showed up the problem. Small cost compared to being stuck with a very expensive lemon.[
]T
Truska, I totally agree that it’s much worse to buy a lemon than to pay for the occasional building inspection report. I would never dare to buy anything without having it inspected first.
I’m pretty sure now from what your accountant said that we can’t claim these things.
Melbear may be right about it having to be a ‘business’ before you’ll be able to claim it.
May be that’s where the confusion came from.[]Thanks for all your replies, much appreciated [
].Agree with Mel there…
Bill, have you done this before ??
As it would make things easier for us if this was the case…
I think as with the ATO and the fact that we self evaluate or tax now.. you can do what you want.. it’s when you get Audited that the problems surface..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
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