Comments on: Is stamp duty a tax-deductible expense for property investors

By: The BMT Team

The BMT Team — Tue, 05 Jul 2022 03:59:00 +0000

Hi Carolyn,

Thanks for your comment.

Stamp duty is added to the cost base when calculating capital gains tax (CGT), which can reduce the amount of CGT payable.

We recommend consulting an accountant before making big decisions.

Thanks,
The BMT Team

By: Carolyn Long

Carolyn Long — Mon, 04 Jul 2022 02:17:15 +0000

Is stamp duty on the initial investment loan also a CGT cost or is it a expense that can be claimed? Thanks

By: The BMT Team

The BMT Team — Mon, 09 May 2022 00:48:22 +0000

Hi Kevin,

Thanks for your comment.

Stamp duty forms a part of the second element of cost when calculating CGT. It gets added to the cost base and it can reduce the CGT liability when you sell the property.

We recommend asking your accountant or consulting a financial adviser, as they can provide financial advice regarding your specific investment scenario and the CGT implications.

Thanks,
The BMT Team

By: kevin bell

kevin bell — Wed, 23 Mar 2022 00:01:19 +0000

to reduce cgt in nsw can i include cgt by adding stamp duty of about $7000 to the cost base

By: BMT Team

BMT Team — Mon, 03 Aug 2020 04:52:47 +0000

Hi Fiona,

Thanks for your comment.

This is a complex area and only your accountant can advise on how stamp duty can be added to your property’s cost base. They can also discuss CGT discounts and exemptions that may also apply to you.

Thanks,
The BMT Team

By: Fiona

Fiona — Tue, 28 Jul 2020 03:31:42 +0000

Hi team BMT,
If i purchase a property but live in it (not PPR) and then move out, can i still add the stamp duty cost to cost base (to reduce the CGT on sale)?
Or to ensure the stamp duty can be added to the cost base, does it need to be first rented out for a period? if so, how long?
Thanks

By: BMT Team

BMT Team — Tue, 11 Feb 2020 00:22:13 +0000

Hi Christos,

Unless your property is in the ACT, stamp duty is not tax deductible. Instead it’s added to the property’s cost base, which reduces any capital gains tax when you sell the property. If it is in the ACT, a deduction would be available but only in the year it was incurred. As you were living in the property initially, no deduction will be available. We recommend discussing the details with a trusted accountant.

Thanks,
BMT Team

By: Christos

Christos — Sat, 01 Feb 2020 01:54:13 +0000

I have a residential property I purchased in 2015 which I resided in from the beginning for 1 year and 3 months before my circumstances changed and needed to lease the property. Is stamp duty deductible only in the financial year it is incurred? If not, will getting a deduction while the property is income producing affect the Principal place of residence exemption (‘6 year rule’)?

By: BMT Team

BMT Team — Fri, 31 Jan 2020 00:23:32 +0000

Hi Martin,

Thank you for your comment.

Stamp duty, preparation and registration costs you incur on the crown lease of an ACT property are deductible to the extent that you used, or will use, the property to produce income.

Should you have further questions, please contact our expert team on 1300 728 726 or visit our website at bmtqs.com.au for more information.

Thanks,
BMT Team

By: BMT Team

BMT Team — Fri, 31 Jan 2020 00:18:09 +0000

Hi Kerry,

Thank you for your comment.

ACT property is commonly acquired under a 99-year crown lease. Stamp duty, preparation and registration costs you incur on the lease of an ACT property are deductible to the extent that you used, or will use, the property to produce income.

Should you have further questions, please contact our expert team on 1300 728 726 or visit our website at bmtqs.com.au for more information.

Thanks,
BMT Team