Hi everyone!
We have just finished our first renovation on a place we bought with an investor about a year ago. We initially wrapped it but the peopple who bought it split and wanted to sell the house. We payed them their equity out and they walked. We then took out an option to buy the house of our investor and went to renovate the house. Now we are sellling the place and will be making good money if everything works out as planned.
Question:
While i was preparing our books I came across the problem of how to claim the reno expenses if the house is not yet in our name (we will sell our option and therefore never legally own the title- no stamp duty
). Do we just claim them as company expenses???Any thoughts and ideas are greatly appreciated.
Cheers, Bec
Hi Bec
To be honest, I don’t know how you would claim it either! Best ask an accountant if you are able to deduct the costs off the profit of your option. that’s the only real way I think you could claim it……. But definitely ask a good accountant.
Cheers
MelBec
This is a tricky one. i would say you could claim it as you have demonstatible equitible interest in the property by holding the option. probably just as business expenses??
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
). Do we just claim them as company expenses???
You must be logged in to reply to this topic. If you don't have an account, you can register here.
