All Topics / Legal & Accounting / Contribution Fees – Tax deductible?

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  • Profile photo of NATSKI12NATSKI12
    Member
    @natski12
    Join Date: 2012
    Post Count: 3
    August 30, 2012 - 6:42 am

    I am looking for some accounting advice. We have a contribution fee of $35k to pay on a townhouse development with 3 units that we have finished constructing.

    Just wondering, as this is a service fee we are essentially paying to the local council – can we tax deduct it against our rental revenues in the tax year it occurs?

    This is a big hit to us and finding the money will be hard after all of the construction costs we had to pay out of our own pocket so I am really hoping I can tax deduct this fee to at least get some relief.

    Thanks all

    Profile photo of Kohlhagen GroupKohlhagen Group
    Member
    @kohlhagen-group
    Join Date: 2011
    Post Count: 58
    September 13, 2012 - 12:28 pm

    Definitely talk to your accountant. On the face of it, looks to be capital in nature.

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