Is Cost of Cancelled IP Purchase tax deductibles ?

Hi all,

I purchase an investment property using a deposit bond and then cancelled the purchase because it has gone pass the sunset date. During the cancellation process, there's a legal cost of approximately 10,000 dollars to rescind the contract because the developer argued against it.

So my question is :

1. Can the deposit bond cost be tax deductibles ?
2. Can the legal cost be tax deductibles ?

Thank you

 

1. no
2. no

 

Possibly a CGT loss, not a tax (income) loss.

CGT event C2 Read TR 1999/99 para 20-24
The contracting rights may be a CGT asset and you have surrendered this. However care must be taken with this as the value of the loss is NOT the market value of the property. Para 23 is important

Is one for personal tax advice as there could be other issues

 

thank you for your thoughts !

 

Can you explain if TR999/99 is still valid. What does Withdrawn mean?
"Product Ruling PR 1999/99 is withdrawn with effect from today."

Legal Database

 

That product ruling has NOTHING whatsoever to do with this thread.

PR 1999/99 is not TR 1999/99

Reading is the first challenge of tax advice

 

TR1999/19
Legal Database

 

Hi all , thank you for your response.

Thank you for your response, Paul.

You mentioned possibly CGT loss event. On what circumstances, it would be considered as CGT loss? and on what other circumstances, would it NOT be considered as CGT loss?

Thank you