can someone please clarify to me if stamp duty and all assoc costs on your IP is actualy can be deducted to your tax return?
Is there any formula to calculate this, or you basically add all the expenses eg. build&pest inspetion, stamp duty, solcitors fee, mortgage cost, plus interest (if neg. gearing). to your tax return?
If this is correct, it might works better than the FHOG???
Can someone help me to explain?You had better use an accountant if you are not sure.
Stamp duty on the land is not deductible. It can be used to reduce the capital gain when you sell, but not claimable while you have the property. But I beleive the situation is different in Canberra with leasehold properties.
Similar with solicitor fees.
Some other costs are considered borrowing expenses. These can be claimed, but only over 5 years (ie 20% per year) or the term of the loan – whichever is shorter.
Other costs can be claimed in full – if related to an investment property.
Terryw
Discover Home Loans
Parramatta
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