Contact UsTax client was purchasing a property with the intent to rent/ lease back to builder as a model home. He incurred considerable expenses to investigate, have contract drawn up, get property finished, etc. As it turns out, builder is not going to be able to do the leaseback arrangement (cashflow issues). New contract being drawn up in 2013. Can the taxpayer deduct the expenses for his investment expenses on this rental/lease back investment in 2012 as, at that time, it was still a for profit investment?
The builder was going to rent it back (leaseback) for a three year period.
If deductible, where?
If the parties cannot come to an agreement the taxpayer is going to sustain a non refundable loss from the builder. Will it be deductible?
If deductible, where?
If the parties cannot come to an agreement the taxpayer is going to sustain a non refundable loss from the builder. Will it be deductible?
