Stamp Duty – Deductable ?

I understand, and may be wrong, that if one generates an income from PI then capital gains can be classed as taxable income and not limited to being offset against against capital losses… This is only the case when developing or property investing is your main occupation.

Can the expense of SD only be used to reduce CGT or can it in any circumstances be offset against taxable income ?. Duty charge don the Contract value is added to the cost base when calculating CGT however mortgage stamp duty is classed as a borrowing cost and is deductible over a 5 year period or the lenght of the loan whichever is the lesser.

Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
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Ph: 07-3720 1888

Hi

Have a look at this from the ATO site. it is in relation to shares, but the general principles would probably apply to property:

Holding shares or actively trading: what’s the difference?
http://ato.gov.au/distributor.asp?doc=/content/76071.htm

If you could be classed as a trader, you could probably claim stamp duty as an income expense in the year it is incurred.

Terryw
Discover Home Loans
Parramatta
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