Timing of tax deductions

[jace the ace]

Are property developing/property trading holding costs such as mortgage interest & rates claimable in the year they are incurred or are they accrued as Work in Progress until the year of sale.

Also how are rental property holding costs(mortgage interest,rates etc) when land is purchased & a construction loan drawn to build a rental property treated.
Are they claimable in the year they occurred?

[Tan]

In the development we did we claimed everything as we went. KPMG were the accountants.

[CJ]

YOu need to watch out for capital costs but the ones mentioned should be allowable annually.

If you use a normal company (not a QC or LAQC) there is a guaranteed deduction for interest.