Town Planning Cost Tax Deductible?

[littlemochi]

Hi all,

I'm about to embark on journey to get the planning permit for 3 townhouses in Melbourne south east. Given the substantial cost to get the plan drawn up, I'm just wondering if this cost is actually tax deductible?

I'll be building this townhouse under my own name, so no company / trust.

Thank you.

 

[Terry_w]

sounds like a capital expense. So no. But could be used to reduce CGT.

However, if you are a developer then maybe deductible against income.

 

[ulvit]

sounds like a capital expense. So no. But could be used to reduce CGT.

However, if you are a developer then maybe deductible against income.

Correct - All fees associated with the town planning permit - including arborists, engineering, town planning consultants etc fall under capital improvements and not tax deductible but can be deducted when calculating CGT

 

[Bwinny]

Hi all,

How would this work if the these costs are paid for using borrowed money such as a LOC? Ie interest deductible etc?

Thanks in advance

 

[D.T.]

Hi all,

How would this work if the these costs are paid for using borrowed money such as a LOC? Ie interest deductible etc?

Thanks in advance

The costs are still part of capital base as per above costs regardless of where you pay them from. Interest on the LOC used should be deductible.

 

[Bwinny]

Thanks DT - Always appreciate the insightful and speedy responses....
still with so much yet to learn from the gurus here!