Hi All,
I have had a look through a few sites and haven’t found an answer to my question.I am in the process of subdividing a property. Can the soil test and Surveyor plot be claimed agains the existing dwelling?
Is the property a PPOR or an existing IP?
How far along are you with the sub-division? Have you Council approval and plans in place?
If existing PPOR, have you re-structured existing mortgage (if you have one) to be acceptable to the ATO that it is to become an IP for tax minimisation purposes?
When did you want to claim these costs as deductions? This financial year or at the completion of the development?
What is the purpose of the sub-division? Are you simply sub-dividing the land or will you be putting houses on that will be rented out? This relates directly to the ATO and the allowable tax applications.
I don't mean to appear difficult with all these questions but, as you see, there is no simple yes or no answer – which probably explains why you can't find answers in these public forums.Hi Anthony,
Property is IP. The land will be kept and built on at this stage possibly rented.From my understanding I should be able to claim both against this IP….
ie: I wanted to know what type of soil my IP was on and
I wanted to plot the existing dwelling and land.It is only early days for the subdivision, has not gone any further at this stage than plotting the existing house.
Thanks
Hi Anthony,
Property is IP. The land will be kept and built on at this stage possibly rented.From my understanding I should be able to claim both against this IP….
ie: I wanted to know what type of soil my IP was on and
I wanted to plot the existing dwelling and land.It is only early days for the subdivision, has not gone any further at this stage than plotting the existing house.
Thanks
fredo_4305 wrote:I am in the process of subdividing a property. Can the soil test and Surveyor plot be claimed agains the existing dwelling?
If you are an investor, it would go into the cost base … apportion on a reasonable basis between blocks.
If you are in a profit making scheme that is less than a business, gains/losses on land will be subject to CGT … as above.
If you are in a business of developing land, the land development costs may partly form the cost of trading stock.
Keep a record of any GST paid in case you are deemed to be conducting an enterprise or otherwise dealing in new land.
We cannot possibly be sure of your circumstances on so few facts.
That's why the recommendation to see an Accountant who can look at the whole circumstances and your options.
Cheers,
Rob
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