All Topics / Help Needed! / Sold my investment property – Are these selling costs tax deductible?

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  • Profile photo of cs_rlewiscs_rlewis
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    @cs_rlewis
    Join Date: 2010
    Post Count: 53
    June 25, 2015 - 2:39 pm

    Hi guys just wondering if these costs are tax deductible – I got charged these by my settlement agent.
    Settlement fee

    Disbursements:
    Landgate seach fee
    bank cheque fee
    postage and courier fee
    telephone and fascimile fee
    miscellaneous and photocopying fee

    I also got charged a land title office charge and an attendance fee by my bank when my loans were paid out…

    Thanks, Ryan

    Profile photo of dtrain28dtrain28
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    @dtrain28
    Join Date: 2015
    Post Count: 27
    June 25, 2015 - 3:06 pm

    The costs listed will come off your selling price & reduce you capital gain (hopefully you made a capital gain).

    The bank fees will be a tax deduction against the rent.

    ps. your accountant will be able to confirm.

    Cheers,

    • This reply was modified 8 years, 10 months ago by Profile photo of dtrain28 dtrain28.
    Profile photo of cs_rlewiscs_rlewis
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    @cs_rlewis
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    June 25, 2015 - 3:43 pm

    thanks but the information you have given me I already know.

    Profile photo of dtrain28dtrain28
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    @dtrain28
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    June 25, 2015 - 3:44 pm

    I don’t understand what you’re asking then.

    Profile photo of cs_rlewiscs_rlewis
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    @cs_rlewis
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    June 25, 2015 - 4:30 pm

    Sorry but I didnt really understand your answer.

    Profile photo of dtrain28dtrain28
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    @dtrain28
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    June 25, 2015 - 5:28 pm

    The settlement costs incurred reduce your capital gain (selling price less cost price) – these do not get added as rental expenses (ie, rates, interest, management costs, etc). I think that’s what you’re trying to determine. If not, speak to your accountant they should be able to answer your question.

    Profile photo of cs_rlewiscs_rlewis
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    @cs_rlewis
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    June 25, 2015 - 5:40 pm

    So your saying the fees charged by my settlement agent are not tax deductible, but the ones by my bank are.

    Thankyou

    Profile photo of TerrywTerryw
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    @terryw
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    June 25, 2015 - 6:24 pm

    not deductible against income. capital costs

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of cs_rlewiscs_rlewis
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    @cs_rlewis
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    June 25, 2015 - 6:28 pm

    Thanks, even the fees charged by my bank from paying out the loan are capital costs?

    Profile photo of crjcrj
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    @crj
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    June 25, 2015 - 7:10 pm

    fees on discharge of mortgage will be tax deductible on income

    Profile photo of TerrywTerryw
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    June 25, 2015 - 7:37 pm
    cs_rlewis wrote:

    Thanks, even the fees charged by my bank from paying out the loan are capital costs?

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    NEver heard of a bank charging for phone calls or faxes.
    If they are fees charged by a lender then they possibly could be borrowing costs and claimable over 5 years.
    Best to seek specific tax advice.

    Sorry, you have sold your property. So these appear to possibly be fees in relation to the discharge of a mortgage and loan.

    • This reply was modified 8 years, 10 months ago by Profile photo of Terryw Terryw.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of cs_rlewiscs_rlewis
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    @cs_rlewis
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    June 25, 2015 - 11:39 pm

    Hi terry they were the fees charged by my settlement agent.

    Profile photo of TerrywTerryw
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    @terryw
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    June 26, 2015 - 8:50 am

    in that case I would say they are capital costs.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of dtrain28dtrain28
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    @dtrain28
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    June 26, 2015 - 9:59 am

    Mortgage discharge fees you can claim against the rental property. As per the ATO.

    https://www.ato.gov.au/Individuals/Tax-return/2013/In-detail/Publications/Rental-properties-2012-13/?page=9

    Cheers,

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