|
Are building and pest inspections tax deductible?
When buying an income producing property, the costs associated with that property are treated differently, depending upon what they were and when they were incurred. Where a building inspection is concerned, this is considered a 'capital cost' and not an expense. This means that you do not get an immediate tax deduction in the year it was incurred. Instead it is added to the cost base of property. If you sell that property then that cost will be netted against any capital gain reducing the amount of capital gains tax you must pay. If you arrange an inspection on a property but did not proceed with the purchase then it will not be claimable at any time. |