Hi
I have seen similar questions but I guess mine is a bit different.
So we have rented our unit and it's been rented from the day 1 we bought the unit.
At some point there has been many issues with the building and the building was brand new when we bought it.
There was a number of challenges and one of the owners sued the owner's corporation claiming we neglected the issues with their unit but in fact we had issues with the property developer and the developer delayed the process of fixing issues until at some point they filed for bankruptcy
We then recruited a lawyer to investigate and potentially sue the developers for their negligence and defects etc.
So now we have three different special levies paid for that financial year:
- for the purpose of covering ongoing legal cost: This was to pay the owner of the unit who sued the owners corp as the lawyers came to an agreement to avoid going to the court
- Engineer investigative works: This was when owners asked a lawyer firm to investigate and potentially sue the developers of the building for defects etc.
- For the purpose of 4 months of insurance premium funding: Not sure what exactly was this for.
So all these payments and their related works are done now.
The question I have is, whether these can be deductible for fy23-24 and if yes, where do they fit in? Capital work or Body corporation fee or Legal fee or somewhere else?
Any help is appreciated
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