Hi Everyone,
Just a couple of quick questions for people in the know.
When working out purchasing costs, with regard to stamp duty, I see in Queensland there is more stamp duty payable if the property is bought as an investment vs if it is bought to live in.
How would this apply if the property is bought initially to rent out for a year or two and then making it our PPOR?
We currently have one house (PPOR) and this would be our second.Also I remember reading stamp duty for an IP can be written of over several years. Is this correct?
Thanks,
Matt.MattyH wrote:Also I remember reading stamp duty for an IP can be written of over several years. Is this correct?Hi Matt,
No, stamp duty is not deductible, it is added to the purchase price of the house. So your cost base for CGT purposes includes the cost of the house, plus stamp duty, transfer fees, canveyancers fees etc.
You may be thinking about borrowing costs, such as application fees, banks charges for attending settlement, mortgage registration etc. These are deductible over 5 full years or the term of the loan, whichever is shorter.
Hi Matt
If the property is purchased as an investment – it will attract stamp duty. I’m not aware of anyway to avoid that (happy to be corrected though).
Stamp duty is generally added to the cost base when calculating CGT. So you will receive the deduction when selling.
Some states are a little different. In the ACT, we’re allowed to claim stamp duty within the first year of ownership
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Good evening Matty,
Best spot to check is the Office of State Revenue either on their website or call them:
http://www.osr.qld.gov.au/duties/transfer-duty/index.shtml
You must be logged in to reply to this topic. If you don't have an account, you can register here.
