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Tax Tip 136: Claiming Stamp Duty on Properties located in the ACT (Part 1)

Discussion in 'Accounting & Tax' started by Terry_w, 17th Jun, 2016.

  1. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Claiming Stamp Duty on Properties located in the ACT (Part 1)


    Property in the ACT is all leasehold. The Crown owns the land and leases it to ‘purchasers’ on 99 year leases.


    Stamp duty is usually a capital expense, but this refers to stamp duty on the transfer of land. Where the stamp duty relates to the transfer of a lease there are different tax consequences.


    Section 25-20 of the ITAA 1997 allows for a deduction for the costs in preparing, registering or stamping a lease of a property. But there is a qualification – only if you have used or will use the property solely for the purpose of producing assessable income. If you have used, or will use, the property partly for that purpose the stamp duty would need to be apportioned so that you can claim it only to the extent you have used, or will use the property to produce income.



    S 25-20 ITAA1997
    INCOME TAX ASSESSMENT ACT 1997 - SECT 25.20 Lease document expenses