Hi there,
I am wanting to know if I can claim legal fees, building inspection costs and other costs associated with an attempt to purchase a new investment property. The short version is that the latest contract failed due to termites found on building and pest and I had to use my solicitor to cancel the contract based on that condition.
If the purchase was successful it would be part of the purchase costs and I know how to deal with that. But how do I claim these costs when the property sale failed. Am I entitled to do so.
I have 2 other investment properties – negatively geared (just), and a PPOR. I am aiming to purchase another investment property in the coming months.
Another situation I have is a property going to auction, I have used my solicitor to examine body corporate documents and I am unlikely now to make an offer. Without even an offer, can this be claimed.??
Of course my accountant will be looking at all this but I like to go there with a bit of an idea.
James
As you are already an investor, persuing another property is not out of the realms of what you already do so even though there is no property which has been purchased you most likely can either capitalise these costs (of failure) against the next property that you purchase or call them part of your costs of doing business. How you go about it would depend upon your business structure.
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