Hi all, we lived in a property for 3 years, renovated it and getting a great rent for it as it is near mining towns. We need to sell it as we would like to pay out bad debt and buy a ppr. Is there anyway that we can claim the costs of agents commission fees for selling it in our tax this year ?
The agents sales costs are deducted from the purchase price when it comes to Capital Gains tax purposes so as long as the Contract is dated this Tax year you will be able to show the Gain in this years Taxable income.
Dont forget however you also need to discount the market valuation (I will assume you did a valuation) from when the property was first available for rent by any future Capital allowance claim you have made subsequently.
Do all the approximate calculations first to make sure the net figure after Capital Gains Tax you come out with will be sufficient to pay out the bad debts you refer to and acquire the PPOR. To late once you have accepted a contract for sale.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I imagine any selling costs (and other capital costs) would have to be apportioned between time lived in v time rented. Don't know for sure though?
Rob?
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
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