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QB 15/13: Income tax - whether the cost of acquiring an option to acquire revenue account land is deductible
This item considers the deductibility of the cost of an option to acquire revenue account land. It concludes that the cost of acquiring the option is deductible through a combination of the financial arrangements rules (if they are applicable) and s DB 23, which allows a deduction for the cost of revenue account property. It also considers the deductibility of the cost of acquiring an option in other situations, such as when the option is revenue account property, and when the option is disposed of or expired rather than being exercised.
QB 15/13 - PDF format (284kb | 13 pages)