Cost of selling IP when vacant

Discussion in 'Accounting & Tax' started by Matche, 24th Sep, 2018.

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  1. Matche

    Matche Active Member

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    2nd Mar, 2016
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    Sydney
    I am going to sell my investment property, the tenant decided to move out when he was informed about the sales. Assuming the property is vacant and do not generate rental income when the sales take place(contract exchange), how we treat the following costs, will it be considered when calculating Capital Gain tax:

    - commission for sales agent
    - marketing cost

    Thank you.
     
    Matche, 24th Sep, 2018
    #1
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Those costs are always CGT costs as well as other costs eg lawyers costs etc.
    They are costs of ownership, not costs attributable to producing rental income.
     
    Last edited: 24th Sep, 2018
    Paul@PAS, 24th Sep, 2018
    #2
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  3. jazzsidana

    jazzsidana Well-Known Member

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    Melbourne

    Both those cost have nothing to do with tenants moving out..

    Cheers,
     
    jazzsidana, 24th Sep, 2018
    #3
  4. Ross Forrester

    Ross Forrester Well-Known Member

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    They are part of your cgt calculation.
     
    Ross Forrester, 25th Sep, 2018
    #4
  5. willair

    willair Well-Known Member Premium Member

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    Maybe also read your insurance policy for the period that you are covered for the time the property is vacant ..
     
    willair, 25th Sep, 2018
    #5
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