QLD Credit Business Duty Tax Deductible ?

[RetiredBy50]

Hello everyone

I am going to settle my IP in QLD in a few days.
I have been charged to pay a QLD Credit Business Duty ($64).
It seems to be a duty payable on loan in QLD.
Does anyone know if it is tax deductible or capital expense ?

Thanks

RetiredBy50

[duncan_m]

Hello everyone

I am going to settle my IP in QLD in a few days.
I have been charged to pay a QLD Credit Business Duty ($64).
It seems to be a duty payable on loan in QLD.
Does anyone know if it is tax deductible or capital expense ?

Thanks

RetiredBy50


Its a borrowing cost. Borrowing costs are depreciable over 5 yrs.

[RetiredBy50]

Thanks Duncan.

For the borrowing cost less than $100, can you not cliam 100% straight away without spreading over 5 years?

Regards

[duncan_m]

Thanks Duncan.

For the borrowing cost less than $100, can you not cliam 100% straight away without spreading over 5 years?

Regards

I believe the $100 cost applies to your TOTAL borrowing costs not individual items within a package of costs incurrred. If your TOTAL costs are under $100 then yes, immediately deductible.

The ATO Rental Property Guide (http://www.ato.gov.au/print.asp?doc=/content/42782.htm) seems clear on this but check with a real Accountant, not a wannabe like me :-)