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tax deductibility

Discussion in 'Accounting & Tax' started by cheekykoon, 14th Oct, 2015.

  1. cheekykoon

    cheekykoon Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    103
    Location:
    Sunnybank
    Hi, as with normal bank practise, bank disburse loan amt say total $400,000.

    Bank is then authorised to deduct the stamp duty and transfer fees plus other fees from the total amount. Eg stamp duty - $15,000.

    Nett amount will be used for settlement. Do I get tax deduction on interest cost for $400,000 or $385,000.

    If its the later, is there any way I can avoid? Eg, transfer the amt to the solicitor first before the bank offer?

    Pls advise.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
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    8,989
    Location:
    Sydney
    $400k if all the deductions relate tot he property and the property is available for rent,
     
  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,384
    Location:
    Sydney
    Interest is tax deductible to the extent that the borrowed funds are used to acquire the property or its outgoings when the intent is to derive rental income. This extends to almost all CGT cost base elements. Stamp duty, legals, repairs, rates, reno etc are all acceptable uses of borrowed funds.