specific and exceptionally expenses - tax deductible?

I have a couple of property assets under development that have incurred some exceptional expenses and I was curious as to the ability to deduct as opposed to applying against the cost base of the properties.

The property assets are in my own name and are being developed for investment and to hold. These assets at present do not generate income because they are under construction. Assets will be income generating in FY18.

I have split out each of the specific events/expenses for ease.

1) Legal expenses - expenses related to the termination of the builder for non-performance on the construction of the properties. Do I look to capitalise these expenses and deduct against income generated from rent of the properties in FY18?

2) Property damage - a break in occurred which resulted in damage to various windows/doors. The builder (now terminated) did not have insurance at the time. Can I claim the cost of repairs to this damage against income? Do I capitalise and deduct against income generated from rent of the properties in FY18?

3) Stolen items – as per break in above. Can I claim loss of my owner supplied items? Do I capitalise and deduct against income generated from rent of the properties in FY18?

4) Building/consultant report – a specialist building inspector/consultant prepared a report on defects and incomplete works on the development. Do I capitalise this expense and deduct against income generated from rent of the properties in FY18?

For any of the above examples, is there an ability to claim during the period these expenses were incurred?

 

1. Capital. Relates to construct not rental production.
2. Does not relate to production of rental income. Non-deductible. Capital.
3. Same as 2. Cannot defer claim and depreciate if assets are lost / destroyed. Insurance (?) would be an offsetting reduction in that amount.
3. Capital. Relates to construct not rental production.

There are other expenses you can claim (and most you cannot). Personal tax advice would have addressed these and indicate some concern you may not have done that. Also one of the key issues that arises is record keeping. If matters change and you propose a sale then GST would impact and records that assist that are essential. Hard to reconstruct later and are needed for diligent costs for CGT if all are kept in any event.