Hotspotting / Residex Reports - Tax Deductions

Hello guys,

Just wanted to check if you can claim reports purchased from Hotspotting or Residex as tax deductions? Can we treat them as part of the cost to acquire the property as a tax deduction for Capital Gains or will they be treated as part of your yearly tax returns? I ended up buying these reports when I was looking for areas to purchase from as a guide. Thanks.

 

Nope.

Not unless you are operating a business of property.

 

Hi.

Just getting back into PI and catching up on legislation.

So a "business of property" means more than just "buy and hold"?

How much activity do you need to qualify as "business of property"...roughly
?

 

one case of 12 properties wasn't considered a business. Needs to be more than passive.

 

Does being in the business of property also potentially mean that the sale of a property could be on the revenue account and not the capital account, potentially doubling tax payable on sale.

 

Yes

 

Even if not in business a property sale could also be on revenue account.