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As a general rule of thumb, acquisition and disposal costs, including the purchase cost, buyers agent fees, conveyancing and stamp duty on the title transfer – are not tax deductible. Rather, these are included in the property's cost base, which would reduce any capital gains tax when you sell the property. This is the case across all states and territories, excluding the ACT, where stamp duty is a tax deduction.
Unlike stamp duty on the transfer of freehold title properties in all other states, stamp duty on the transfer of a property under the ACT's leasehold system is tax deductible. This can only be claimed in the financial year that the property was purchased.
As always, every investor's tax situation is different. We advise that you seek further advice from your accountant on this matter if you have purchased a property in the ACT.
Know how the Canberra leasehold system works? Get up to speed here.
Milk Chocolate was founded seven years ago by Richie Ragel and Michael Cleary, to purchase residential and commercial property in Australia on behalf of our clients, looking for a home or investment property. To see how we can help you get in touch here.
Sources: Australian Tax Office
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