Deductibility of holding costs for land
This Interpretation Statement considers the deductibility of holding costs for land and whether the land being taxed on sale is relevant to deductibility. Holding costs are expenses incurred in relation to the ownership of land, such as interest, rates, property insurance, and repairs and maintenance and body corporate levies (provided they are revenue expenses). Holding costs do not include capital improvement costs or expenses that relate only to the use of land.