Apologies if this is a silly question, but could anyone tell me if stamp duty and/or legal fees incurred when buying a property is a claimable expense at tax time?
CheersNo. It is added to the ‘cost base’ of the asset when calculating the taxable capital gain/loss.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auWhat Stuart has said is correct.
Though I understand that if you borrow money to purchase your IP all the costs associated with the borrowings are spread over a 5 year period provided that the monies under the Mortgage remains owing after 5 years – that is you can claim one fifth of the borrowing costs each year for 5 years. These are usually the Bank’s application fee, valuation fee, stamp duty and regn fees on the Mortgage and any Solicitor costs for reviewing the Mortgage documents.
If you repay the Mortgage within the 5 year period – you still claim one fifth for each year and in the year that you repay the loan you claim the balance of the costs.ie: Total borrowing costs are $500 – you claim $100 per year. If you pay off the loan in year 3, you would have already claimed $200, so in year 3 you would claim the final $300.
I hope I have explained this clearly and it makes sense.
Cheers
NessieGuys, thanks for clearing this up.
CheersIf you purchase an IP in Canberra you can claim the whole lot (stampduty + legal fees) in that financial year. It was explained in this forum before. I forget the threat number. [
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