All Topics / The Treasure Chest / Tax Deductable expense

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  • Profile photo of rx2_73rx2_73
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    @rx2_73
    Join Date: 2003
    Post Count: 24
    August 19, 2003 - 3:26 am

    Hi,

    Quick question. If you use a buying agent in order to help you find a property, are his fee’s tax deductable?

    Cheers

    Rob

    Profile photo of RodCRodC
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    @rodc
    Join Date: 2002
    Post Count: 335
    August 19, 2003 - 3:59 am

    I’ll have a go at this.

    I would expect this to be classed as a purchasing cost which is added to the capital cost base and therefore not deductable. If you paid for the buying agent with borrowed funds the interest on the borrowings would be deductable though.

    Rod.

    Profile photo of Elysium-MElysium-M
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    @elysium-m
    Join Date: 2003
    Post Count: 259
    August 19, 2003 - 5:44 am

    I agree with Rod. It’s part of the cost of buying the property, like stamp duty and settlement fees.

    Cheers
    M

    Profile photo of rx2_73rx2_73
    Member
    @rx2_73
    Join Date: 2003
    Post Count: 24
    August 19, 2003 - 11:09 pm

    Cheers for the feedback guys.

    I also spoke to an accountant. It is possible to claim as a deduction if you are operating as an investment business. However if you are not, then it is taken into consideration as part of your cost-base and would be taken into condiseration on a CGT event.

    Cheers

    Rob

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