Plenty of tax questions being asked, given it's that time of year! So here's another to add to the pile. Disclaimer - Yes, I will be getting specific advice from my tax accountant, but having a little knowledge beforehand can't hurt! I purchased a property in November 2014, which had a completely run-down house on a corner block. The house was unlivable, so no rental income. We received conditional development approval to do a major renovation on the property, and eventually subdivide the block and build a new house on that newly created block (sub-division not yet finalised, nor has construction started on the new house). As at 30 June 2015 the renovation of the existing house was approximately 85% complete, so still not available for rent. In the time that I've owned the property, we've incurred costs (outside of those covered by finance) in relation to: Interest on original purchase Interest on construction loan Rates and water bills Insurance DA costs (including design fees, council DA fee, surveyors, town planning, soil testing) Sub-division costs (e.g. QUU water and sewerage connection fees) Costs relating to construction (e.g. temporary fence and toilet hire, skip bins, construction drawings, building certification, tree removal, etc.) My question is, which of these expenses are deductible in FY15, given the property has not been available for rent? I have looked briefly at the outcome of Steele v. FC of T and understand that interest may be deductible, on money borrrowed to purchase land intended to be developed. What about the other costs? And a follow up question - does the answer change based on the intention for property (i.e. intention to sell vs rent upon completion)?