Claiming deposit loss?
Question from Steve updated on 2nd July 2013:
We have one investment property in an LTC and we were building another but the development went under and we lost our deposit. Can we claim this loss as an expense?
Our expert Mark Withers responded:
I assume you are an investor in the business of deriving rental and I also assume the deposit was lost because you didn't settle on an acquisition. This then would be considered a capital loss that is non-deductible. Losses on disposal of buildings are also non-deductible in the same way that gains are not assessable.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.