I wonder if all, or any, expenses relating to trying to get a dual occ or sub-div from an i.p. happening,that is not approved,would still deductible/claimable expenses?
Hi Misty,
I think you will find that the subdivision expenses will be classified as capital expenditure, so that the expenditure will not be claimable against revenue – unless the revenue is capital.
What I am saying is that if and when you sell the property, and there is a profit to be taxed – say capital gains for example – the subdivision costs will be deductible from the capital gain before calculating the taxable amount.
Christopher Raynal
Master Accountants Group Limited
PO Box 46018 Herne Bay
Auckland New Zealand
Ph +64 9 360 3259
Fax +64 9 360 2180
http://www.masteraccountants.co.nz
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