I’m a newbie and considering to do the property uplift program run by DG Institute, but I’m not sure if the cost of the program would be tax deductible.
1. I currently do not own any investment property, if I sign up for the program with my name and do a land subdivision deal in the same FY, get some profit, would the cost of course be tax deductible?
2. If I establish a company and use this company as a trustee for a trust, then sign up the program using the company/trust name. Assuming that I will use the trust to buy land and do subdivision, generate income from the subdivision, would the cost be deductible in this case?
Thanks you all in advance.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
This expense doesn’t relate to current income.
If the trustee is conducting a business it could be deductible to some extent.
Thanks you so much for your advice Terry. I really appreciate your help!
I’m wondering if the trustee(the company)is conducting a business,would it be a concern in term of asset protection in the future?
Once again, your help is sincerely appreciated
BettyTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Asset protection is more of a concern if the trust is trading – negligence and contractual risks. You also get this when running a business of property too, but less so than if selling widgets etc