Hi everyone I just have a couple of questions on flipping a unit. As it will be an investment property am I able to claim stamp duty, legal fees, renovation cost , real eatate agent fees and loan repayments as a tax deduction ? Would I be better of to set up a business to do this? Any help would be much appreciated
Yes you claim all costs of buying and selling.
You can set up a business if you want. Speak to a professional about the pro's and con's of doing that.
The initial costs outlayed to bring the property into your name as well as up to scratch to sell, ie renovation costs, are generally capital and are therefore not deductible. If you are running it as a business then these may be tax deductible, but then you will likely be subject to tax at the marginal rate rather than CGT. Not all reno costs are capital in nature though.
Loan repayments will generally be deductible.
You'll need to speak to an accountant about the specifics.
Thanks for the info guys
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