deductibility of legal fees and stamp duty

Viewing 8 posts - 1 through 8 (of 8 total)

Phil50
Member
@phil50
Join Date: 2003
Post Count: 3
November 15, 2003 - 7:12 am
Can the legal fees and stamp duty on the purchase of an investment property be deducted in the fist tax return.
My accountant said they are only claimed when you sell the property and they are claimed against the capital gain.
Any advice please
Chris-Syd
Participant
@chris-syd
Join Date: 2003
Post Count: 75
November 15, 2003 - 8:06 am
Yes and no.
The legal fees can be deducted over 5 years or the term of the loan.
Stamp Duty is not tax deductable. And you can only get to take it off the profit before tax.
Chris
All post are IMHO.
kay henry
Member
@kay-henry
Join Date: 2003
Post Count: 2,737
November 15, 2003 - 8:51 am
Chris said:
“All post are IMHO.”
Chris, this is a discussion board, and you should always put your opinion. There are heaps of people who will correct us if we’re wrong :o))
And any person will probably get a legal opinion or check out many places for info about their questions anyway. Much better than justifying a mistake made to an ATO auditor by saying “but newbie4property told me that on an anoynymous forum board!”
Mel, what happened to your post on this topic?
kay henry
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
November 15, 2003 - 9:40 am
Hi Chris
Are you sure about that? I thought legal fees were considered part of the purchase costs with stamp duty, and could only be claimed when the property was sold.
Terryw
Discover Home Loans
North Sydney
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
OzpatinQ8
Member
@ozpatinq8
Join Date: 2003
Post Count: 40
November 15, 2003 - 12:34 pm
Im of the same opinion Terry.
Capital costs :Govt Stamp Duty, Sellers Agents Commission, Legal Fees and improvements reduce your CGT liability.
Loan establishment fees can be claimed over a 5 year period.
J
“Success comes from having the proper aim as well as the right ammunition”
Jake_Heinemann
Member
@jake_heinemann
Join Date: 2003
Post Count: 25
November 16, 2003 - 4:04 am
IMHO??
=======================================================
“Your Profit is made when you buy… not when you sell” (Rich Dad)
C2
Participant
@c2
Join Date: 2002
Post Count: 518
November 16, 2003 - 4:31 am
Jake,
In My Humble Opinion(IMHO)
Anyone out there have some free time to make a list of acronyms for the newbies or just add some that you know?
Investment Property
Primary Place Of Residence
Capital Gains Tax
Line Of Credit
By The Way
Who’s next?
C2
“Is it true the more you owe the more you grow until the bank steps in?”
melbear
Member
@melbear
Join Date: 2003
Post Count: 2,429
November 16, 2003 - 1:25 pm
Hey C2, there has been a thread posted on the acronym topic, I think it may have been in the Forum Fun. If I can find it I will post the link.
Cheers
Mel
Found it, but it’s more about chat abbreviations than any property ones. Oh well, I’ll post it anyway
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=4903