Are engagement and percentage fees claimable?

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zen
Participant
@zen007
Join Date: 2016
Post Count: 46
March 16, 2016 - 3:08 pm
Hi All
Wondering if the engagement fee of $1100 (GST inclusive) and commission or percentage fee 2.5% from agency such as:
– Dream Design Do Property (Zak Ameer)
– Metropole Property (Michael Yardley)
– Binvested (Nathan Birch)
Is 100% claimable back on tax?
They do all the work for you and if settlement is successful with tenancy, we pay them the 2.5% from the value of the property they have successfully done on our behalf. Example, $400,000 at 2.5% = $13,411 claimable?
Thanking you for your comments….
Zen
- This topic was modified 8 years, 1 month ago by zen.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 16, 2016 - 5:57 pm
No its not deductible at all as it is a capital expense (can be used to reduce CGT).
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
BuyersAgent
Participant
@knightm
Join Date: 2005
Post Count: 338
March 16, 2016 - 7:53 pm
^^ what he said. Added to capital base for reduction of future cg like stamp duty.
BuyersAgent | Precium
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South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
zen
Participant
@zen007
Join Date: 2016
Post Count: 46
March 17, 2016 - 8:37 am
Thanks Terryw and BuyersAgent, appreciate your comments. Maybe I need to educate myself in doing things myself through Steve’s steps!
Zen