Investment property i purchased was $102,000. Borrowed $104,000 to cover some fees, can i claim that extra $2000 as a deduction? (solicitors fees, stamp duty etc)
Thanks,
from what i know you may be able to deduct solicitor fees but not stamp duty.
It depends on what fees you paid. Stamp duty is only claimable off the capital gain when you sell, same for solicitor costs. Other costs such as borrowing costs can be claimed, but over 5 years.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Other costs such as borrowing costs can be claimed, but over 5 years or the Term of the loan whichever is the shorter.
In many cases clients take 3 year interest only loans so the claim is over the 3 year term after which time you will need to reapply again for a new loan. Just helps with the upfront claims.
Richard Taylor | Australia's leading private lender
Good point Richard!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Good point Richard!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
To be a bit more precise, here is the list from Rams: Bear in mind this was purchased March 2007, and is my first investment property.
$104,000 Loan.
Office of State Revenue: $416
Registrar Of Titles : $334
Doc Mortgage: $28
In a Minute Courier $88
Prime Legal: $38
Paid to Previous Owner: $97,775
Manley And Associates $775
Real Estate: $2980
My Conveyancer $780
Application Fee $395
Valuation Fee $220
Doc and Settlement Fee $150
Bank Cheque Fee $20What is deductible from that, and saying that things are done over 5 years, how does that work when i fill out my return, like do i divide it by 5 to get the 1st year amount…?
Thanks Guys
All expenses in relation to the preparation of Mortgage documents and borrowing costs for the loan are deductible.
In the first year the expenses are proportionalised from the date of settlement to the end fo the financial year.
The 4 full years are claimed and the final year is the balance of the first year.Richard Taylor | Australia's leading private lender
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