Chapter 9 - 3.3 - Allowable Expenditure

Question 1

Which three types of allowable expenditure may be deducted from net proceeds?

Answer 1

• the acquisition cost of the asset
• expenditure on enhancing the value of the asset (capital expenditure)
• incidental costs of acquisition

Question 2

What are some examples of expenditure on enhancing the value of the asset (capital expenditure)?

Answer 2

• new extensions
• architect’s fees

Question 3

What are some examples of incidental costs of acquisition?

Answer 3

• legal fees
• surveyor’s fees
• stamp duty