Lost settlement documents

Discussion in 'Accounting & Tax' started by jaoa23, 4th Mar, 2017.

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  1. jaoa23

    jaoa23 Member

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    Hi,

    My parents bought an IP in 1999 and sold it last year. They are doing their taxes but cannot find the final settlement letter from conveyancer when they bought the property.

    They made a capital gain and need the capital expenses (stamp duty, government taxes) to claim against the capital gain. But they lost the settlement letter.
    They remember the conveyancer but they are not in business anymore.

    Any ideas what to do now?

    Thanks
     
  2. Ross Forrester

    Ross Forrester Well-Known Member

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    Do a landgate search to find the cost of the property.
     
    Craig Seddon likes this.
  3. jaoa23

    jaoa23 Member

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    They still have the contract that states the amount it was bought for so know the cost of the property. It's the stamp duty paid and other capital costs that is listed on the settlement letter that they need to do their tax return.
     
  4. Craig Seddon

    Craig Seddon Member

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    @jaoa23 If you have a Settlement Agent/Lawyer contact, they could also calculate the stamp duty on the 1999 purchase date and amount too.
     
  5. Paul@PAS

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

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    Seddon ?Please explain how duty is assessed on a historical price. Duty is based on market values and OSR seek a valaution (at client cost) dont they ? GCT certainly uses this basis also. Are you a qualified business member or just guessing ?
     
  6. Craig Seddon

    Craig Seddon Member

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    If you have the purchase price and date of the property, but lost your record of stamp duty paid, a settlement agent/lawyer can confirm the stamp duty at that historical date.
     
  7. Paul@PAS

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

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    Yep. A qualified accountant or lawyer could advise the amount that would have applied at that date as a qualified opinion based on the contract. A settelement agent probably lacks the qualifications to deterime a tax liability. However for substantiation for CGT, evidence of payment follows. In all my years I have actually seen duty not charged more than once. When its not paid a CGT cost cannot be claimed however. Evidence of the cost being incurred and payment evidence is a requirement for the taxpayer.