Hi,
I have one for those in the know. I am looking for my first IP using the FHOG. As per the FHOG gridline I plan to move in for 6 months just before the end of the first 12 months. I am thinking of using a Buyers Agent to find the property.
I would like to know if I can claim the BA fees at tax time, even though I am using the FHOG ?
I am also going to try and get this fee rolled into the loan, would I still be able to claim it?
Thanks
I beleive that buyers agents fees are a capital expense, and therefore are not claimable at all – except gainst capital gains when you sell.
Any fee you borrow to pay for that is for investment purposes should still be claimable.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Is that right?????
I don’t understand why they would be classified as a capital expense, they are not adding capital value to a house, they are just a cost of doing business!!!!
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582If you are in the business of buying and selling properties, you might be able to treat properties as trading stock, and hence capital gain tax is ignored, as a result, the buyer agent fee, together with other non-deductible fees such as conveyance, stamp duty etc will be deductible.
That’s my understanding, however you probably need an accountant to look into more details of your business.
Thanks allot for that guys.
Dr x, I don’t understand either.
I suppose I will have to convince the bank to let me role the agent’s fee into the loan. Actually they said that I could role it into the loan as long as I increase the contract price of the house by the amount of the agent’s fee. For example sale price of the house say $100,000 and the agents fee $6,000 bringing the contract sale price to $106,000.
Apparently they can only lend me the amount that is on the contract. Which leaves me with a dilemma because if the contract price of the house is increased to cover the agents fees what will stop the vendor trying to get more cash out of me, as I would have only given the vendor $100,000?Thanks
It is my understanding thjat if you buy the investment property in that financial year then the fee should be deductaable. If you have a good property accountant then check with them or get them to check with the tax department
Nigel Kibel
http://www.propertyknowhow.com.au
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