Are any of these costs during property development tax deductible?

Background: Bought an IP in 2017, leased for 2.5 years while preparing for development. Got DA and tenant vacated in Jan. 2020. Construction has since started and is currently in progress. No more rental income, and a long list of expenses.

I am under the impression that most of these expenses are cost base only and not tax deductible, but just wondering if I could borrow some extra pairs of eyes and see if any of these could be tax deductible please?

Many thanks for reading.

List of expenses up to date:

• Architect

• Contour Survey

• Arborist

• SA Water for new meters and sewerage

• Land Division

• Demolition

• Demolition Application

• Demolition Plan

• Private Certifier

• CIBT

• NBN Application

• Shadow plan

• Site + Engineering report

• Energy Report

• Electricity Abolishment

• Council: Application + Cat2 + staged consent + tree fund

• Fencing & Retaining

• Open Space

• Building Inspection

• Conveyancing

• Mailbox after handover

• Clothesline after handover

• Council rates (Applied for land division in this FY so still paying for one lot)

• SA water bill for water usage during construction

 

No

 

As the property was acquired in 2017 the holding costs may be deductible IF you propose to hold and rent out at the end. Also scrapping on the old dwelling ? Again if you propose to rent the new property

Like all good profit making plans that involve $1m of money it would be wise to get tax advice on all the issues BEFORE starting so all this could have been costed and known.

Developer toolkit attached

 

Developing to rent or sell?