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initial payment – CGT base or tax deductible?

Discussion in 'Accounting & Tax' started by newbie property, 10th Feb, 2016.

  1. newbie property

    newbie property Active Member

    Joined:
    4th Nov, 2015
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    Location:
    parramatta
    I’m just confused with all the initial cost of buying an IP, say when settling a property, I pay a few bank charges, say adding a security, attending settlement fee, cheque drawing fees….small or big, they all added up. I’m just wondering are they tax deductible as they are one-off bank charges, or are they part of settlement cost or deemed as CGT base?
     
  2. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
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    2,400
    Location:
    Sydney
    Some are capital costs eg bank cheques for payts, some deductible eg strat and rates levies IF property rental from day one, some non-deductible eg period from acquisition until property rental for rates etc but some are capital that adds to cost base eg legals and some bank fees which may be deductible over 60mths.
     
    Perthguy likes this.
  3. newbie property

    newbie property Active Member

    Joined:
    4th Nov, 2015
    Posts:
    29
    Location:
    parramatta
    @Paul@PFI Thanks a lot, Paul, very helpful!