Hi, I am new to this forum,but lot of interesting information is passed on which is great to learn.Thanks for all who contributed.
I have a question regarding buyers agent fee.Is this Tax Detectable.Can some one please high light on this.
Thanks
Mike.No. Not deductible (well until you sell that is)
It gets added to the base when you sell.
The only things that are deductible are costs against the rent.
In other words things you must pay in order for the property to be available for rent (interest, rates etc). BA fee is a cost associated with buying.
Thanks Catalyst,
That means that If I am buying property for investment,then it is tax detectable.Is this correct.
Also Loan costs where they are incurred where the purpose of the loan is for investment.
Deductible over 5 years or the term of the loan whichever is the greater.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
No. The BA fee is not deductible.
As I mentioned (when you sell) you just add the cost to your purchase price then take that off the sale price to work out CGT.
I agree. The Buyers' Agents fee is capitalised and not depreciable but form part of the cost base of the property.
Will be added to your purchase cost at a time of future sale to work out CGT ( as mentioned above ) If you would like a' cheat sheet ' of what expenses are deductible to property investors just let me know.Hi Janemmatthews,
Yes can you please foward that cheat sheet.
thanks
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