is this tax deductible? - CHEQUE WITHDRAWAL FUNDER FEES

Discussion in 'Accounting & Tax' started by _alex_, 19th Aug, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
  1. _alex_

    _alex_ Active Member

    Joined:
    24th Jan, 2017
    Posts:
    36
    Location:
    Sydney
    I'm doing my tax return now. I incurred a $300 "CHEQUE WITHDRAWAL FUNDER FEES" to settle an investment loan to acquire a property. Is this tax deductible?
    Thanks!
     
    _alex_, 19th Aug, 2017
    #1
  2. Ross Forrester

    Ross Forrester Well-Known Member

    Joined:
    30th Oct, 2016
    Posts:
    2,085
    Location:
    Perth, Western Australia
    If it was a bank fee associated with the purchase of an investment property it is deductible over 5 years or the life of the loan - whichever is shorter
     
    Ross Forrester, 19th Aug, 2017
    #2
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,932
    Location:
    Australia wide
    that is an unusually large unusual fee. Sounds like it might be a borrowing expense so deductible over 60 months.
     
    Terry_w, 19th Aug, 2017
    #3
  4. _alex_

    _alex_ Active Member

    Joined:
    24th Jan, 2017
    Posts:
    36
    Location:
    Sydney
    Thanks guys!

    Another question. What about these? Which should be spread over 5 years, and which can be deducted 100% in the first year?
    • I incurred $260 to fix the investment loan.
    • I paid for an inspection report before buying the house
    • The bank charged me for two valuation reports before settling the loan
     
    Last edited: 19th Aug, 2017
    _alex_, 19th Aug, 2017
    #4
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,932
    Location:
    Australia wide
    Sounds lime a borrowing expense as well
     
    Terry_w, 19th Aug, 2017
    #5
  6. Ross Forrester

    Ross Forrester Well-Known Member

    Joined:
    30th Oct, 2016
    Posts:
    2,085
    Location:
    Perth, Western Australia
    Deductible over 5 years straight line on a days basis.
     
    Ross Forrester, 19th Aug, 2017
    #6
  7. Paul@PAS

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

    Joined:
    18th Jun, 2015
    Posts:
    23,504
    Location:
    Sydney
    Borrowing exp are deductible in full up to 300. Then deducted over 60 months...not 5 years. Or tge loan term if it is less. Add them all together
     
    Paul@PAS, 20th Aug, 2017
    #7
Join Washington Brown's Tax Agent Referral Program