Selling costs - which FY are they in?

In August I hope to sell an IP. Some costs incurred or will be incurred prior to 30 June are
PM - terminating lease and other end of lease costs
OC certificate
Advertising
Staging
Photography
Maybe others

Do these expenses go in FY18 as part of the usual IP expenses or are they part of the CGT calculations for FY19? TIA

 

2018

Haven't accepted an offer or sold yet

 

The FY that they are incurred. Commission/legals on settlement, contract costs (searches, S149 certificate etc) when charged.

 

they are capital costs and not deductible.
can be used to offset CGT

 

Thanks. I'll attempt to pay as much as possible in FY19, as the CGT will be significant. The tenants are still there for another week, then a little maintenance, with staging in early July. The timing is good for FY19 spending. However, the rental income from that property will be nil.

 

It wont matter when they are paid. None are deductible v's 2018 tax. Only when the sales contract is executed is there a CGT event. (2019 tax year)

At that time all CGT costs will impact the costbase and the final CGT gain determined. It also doesnt matter when it settles. There are loads of CGT costs some taxpayers incur years and years before sales. eg stamp duty, legals, etc when they buy.... And third element CGT costs if they are available may have been paid through the property ownership.

If this basic issue of CGT is not understood I question how inaccurate the CGT calc will be. Overpay or under pay tax ?

 

These are capital expenses and not tax deductible, so the financial year you pay them in is irrelevant.

You will take them into account when calculating the capital gain.
Marg

 

Thanks. I have my tax return done by a tax specialist, and I have full confidence that the tax return will be correct. I'm attempting to pay items to greatest advantage. It now looks as if most if not all payments will be in FY19, and many of them for this IP will be part of the CG calculation.