Hi[
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I’m a new member to this site and i’m still working my way around. But I wanted to ask you what all you ‘professional investors’ do about stamp duty and other costs involved in buying and selling property?
I also wanted to ask that if i had a company that’s core function was investin, would the stamp duty be tax deductable? []
Can someone please help me!!!Thanks
Karan[]Hi Karan_mak30332,
Yes Stamp Duty is deductible on a IP, though you cannot claim it all in one tax return, until you sell, but you can claim it over a 5 year period if your intentions are to keep the property for this length of period or if you dont ever want to sell it.
Cheers,
sisoh rite, thanks for your help sis
When you buy a property, you have a couple of different Stamp Duties that you have to pay, one is based on the purchase price of the property and the other is based on the loan amount.
Stamp Duty on the property is added to the cost base of the property for when you sell in order to work out the amount of capital gains. It is not deductible.
Stamp Duty on your loan, I believe becomes part of your loan costs that you can deduct over a 5 year period.
Cheers,
StephenHi Guys,
In relation to stamp duty, if you buy a place as your PPOR originally, but then convert it to an IP after one year, is any of the stamp duty tax deductible?
Thanks,
LuckyoneI dont think it is tax dedustable as a PPOR has a lower stamp duty to start with. (QLD 50% less) so you save from the start. If you manage to sell it after 12 months there is no capitial gains tax either. If you are nomadic you can turn properties over this way. One a year though but a good start
Originally posted by Monkeybam:I dont think it is tax dedustable as a PPOR has a lower stamp duty to start with. (QLD 50% less) so you save from the start. If you manage to sell it after 12 months there is no capitial gains tax either. If you are nomadic you can turn properties over this way. One a year though but a good start
I wish that was the case in the ACT!! IPs and PPORs are treated exactly the same for stamp duty.
The only good thing about IP stamp duty is that it IS tax deductible in the ACT because you are buying leasehold land[
]Cheers
Melthnx for your help guys, just have one last question, and that is how is stamp duty calculated?
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