Hi all,
To cut a long story short, I had a development proposal that did not go ahead (rejected by council) – all is well and I'm moving on.
Now I'm seeking to claim the expenses paid to council as some sort of deduction, as I would have claimed these part of the cost base, however I was not able to proceed with the development.
Therefore, I need an accountant who can amend my returns for a few years back and claim these expenses + some other things that have not been claimed.
Can anyone recommend a reasonably priced Accountant in Melbourne (pref. N or NW of CBD as I'm assuming I'll need to cart some documents over).
Thanks,
Purchase costs such as these are generally not deductible, but if you are conducting a business then maybe.
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
Correct, however I'm not talking about purchase costs. I'm talking about architect fee's council fee's, land surveyor etc.
I was speaking with an accountant who mentioned you can claim this back two ways a) as a capital loss or b) i believe he said 'revenue expense, or revenue loss' – basically, option b would mean I would be able to amend the tax return and have the money in my pocket now, rather than option a which would be deducted when making a capital gain…
Is this correct?
Excuse my ignorance I have very little knowledge of taxation, so any help would be much appreciated.
He did mention that the intention was to add value to the property or something along these lines, and because I made a loss and I'm not continuing with the project, these can be deductible..?
wealthyjvd wrote:Excuse my ignorance I have very little knowledge of taxation, so any help would be much appreciated.He did mention that the intention was to add value to the property or something along these lines, and because I made a loss and I'm not continuing with the project, these can be deductible..?
Perhaps not deductible.
But you should seek advice because it could be. You could have a consult with Michael of House of wealth and he would tell you – think he would charge you about $275 for it.
I should add that I am involved with House of Wealth..
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
Hi Wealthyjvd,
Firstly, everyone's circumstances may be different, what I put below may not apply to you and it would be best to speak to your accountant.
To get clarity on your situation, what was your intention with the property? Were you intending to develop a property and hold it as an investment property receiving income for a number of years (capital asset) or were you planning on developing the property and selling it as soon as possible for a profit (trading stock)?
Regardless of the answer, you shouldn't have to go back and amend any returns just for this development, if you have other costs/ deductions that you need to claim, then fair enough.
If you were an investor, when the development is no longer viable/ you decide not to pursue any further, any costs that you have spent to date could be treated as a capital loss.
If you were in the business of developing the property with the aim to sell and make a profit, then these costs should have been carried forward as trading stock up until the development ceased. Once you cease the development then these costs are generally able to be written off.
As I mentioned above, a local accountant should be in the best position to discuss the above with you.
Thanks for the contact Terry, however all my tax returns are completed, are you saying he will charge $275 to tell we whether or not something is a deduction or not?
Hi Sunnycoast, the original intention was to buy, get DA, build and then sell for a profit. However, we bought, spent money on DA, didn't get approval and are now looking to include the costs of getting DA (architect, surveyor, aborist etc.) as a tax deduction in our previous years tax returns.
Thanks,
wealthyjvd wrote:Thanks for the contact Terry, however all my tax returns are completed, are you saying he will charge $275 to tell we whether or not something is a deduction or not?Yes.
It is not like asking can I deduct socks. It is a complex situation where you will have to describe your circumstances and the development project.
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
Sounds good Terry. I've popped an email through to HoW. Thanks!
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