Gday all
Just a quick question, is government stamp duty ie. about 8000 dollars on a 200,000 dollar ip a tax deduction or what……No, stamp duty cost on the purchase of an IP is not tax deductible. It forms part of the cost base for CGT when the property is sold in the future.
UNLESS you are buying in the ACT….
Cheers
MelHow so,Mel???[confused2]
The ATO’s current ‘Rental Properties’ guide states (at page 4) that the costs of acquiring or disposing of a rental property (including stamp duty on the property transfer) are not deductible (but may be included in the property’s cost base for CGT purposes).
However, it also notes that the costs of preparing and registering a lease and the cost of stamp duty on a lease are deductible to the extent that you use the property to produce income. As properties are commonly acquired in the ACT under a 99 year crown lease, these costs (including stamp duty) are deductible to the extent that you use the property as a rental property (refer pages 4 and 14).
wow, youre onto it! Is that what is called “leasehold” ?? If so,i believe there are alot of “out the back of Bourke” places still under that.
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