Buyers agents fees

[Logan]

Just wondering if buyers agent fees are tax deductible and if I could claim interest on money borrowed to fund the fees ?

Most seem to be around $10,000.

 

[NPB]

Just wondering if buyers agent fees are tax deductible and if I could claim interest on money borrowed to fund the fees ?

Most seem to be around $10,000.

Ask an accountant to confirm.

What I have always done is claim the interest on any loan money used to pay the BA.

Then add the fee to the capital cost of buying the property.

 

[Jamie M]

Ask an accountant to confirm.

What I have always done is claim the interest on any loan money used to pay the BA.

Then add the fee to the capital cost of buying the property.

+1 that's my understanding too but one of the resident accountants will confirm.

Cheers

Jamie

 

[Colin Rice]

Usually betwee 2-3% for full service but varies depending on the service offering.

I believe yes and yes to your questions but please confirm with an accountant.

 

[Jacque]

As BAs, our fees (for IPs) are not immediately tax deductible but are added to the cost of acquisition of the property, in the same way that stamp duty is ie; it forms part of the asset?s ?cost base? for CGT purposes. When the property is eventually sold the increased cost base then results in a reduced profit for CGT purposes, therefore resulting in savings I hope this helps.

 

[Logan]

Excellent - thanks for the replies ! I was very concerned that I couldn't add the fee to the cost of acquisition of the property and would have to use actual cash

 

[knightm]

Just wondering if buyers agent fees are tax deductible and if I could claim interest on money borrowed to fund the fees ?

Most seem to be around $10,000.

AS per Jacque and Jamie's response add to cost base for CGT but use borrowed funds interest should be deductible. Check with accountant to be sure but that is my understanding too.

Rates vary quite a bit. Some you might need to enquire directly to obtain fees. Mine (for example) are published on my website.