Hi Team,
I spent money on lawyers/building inspection etc on a commercial property which I ended up not purchasing.
The accountant says these costs are not deductable for these reasons:
"Preliminary expenses are neither incurred in carrying on a business or in deriving assessable income. Therefore these expenses will not satisfy the nexus test for deductibility under section DA1 of the Income Tax Act."
I was a bit suprised by this - does anyone have any other information or is this just the way it is?
Cheers,
SK
I spent money on lawyers/building inspection etc on a commercial property which I ended up not purchasing.
The accountant says these costs are not deductable for these reasons:
"Preliminary expenses are neither incurred in carrying on a business or in deriving assessable income. Therefore these expenses will not satisfy the nexus test for deductibility under section DA1 of the Income Tax Act."
I was a bit suprised by this - does anyone have any other information or is this just the way it is?
Cheers,
SK
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