Are subdivision costs tax deductable?
Question from Rien updated on 11th December 2009:
Our expert Mark Withers responded:
No, the subdivision costs are not deductible, they are capital in nature and have no nexus with the income earning activity of rental. For the subdivision costs to be deductible the partnership would need to be deriving assessable income from the land sale.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.