Deductions for valuation

[fredo]

Deductions

Some Clarification please
I am looking to buy an IP
I have to have it valued, along with my PPOR total cost $400 is this a tax deduction
Is the stamp duty deductable
I know tye interest on the mortage is please help
Is my solicitors fes for aqusition deductible

Regards Fredo

 

[DaleGG]

Re: Deductions

Originally posted by fredo
Some Clarification please
I am looking to buy an IP
I have to have it valued, along with my PPOR total cost $400 is this a tax deduction
Is the stamp duty deductable
I know tye interest on the mortage is please help
Is my solicitors fes for aqusition deductible

Regards Fredo

Hi Fredo

The costs of the valuation is imposed by your bank as a part of the borrowing process, as such, the cost is added to all the other borrowing costs and written off over 5 years, or, the life of the loan itself whichever is the shorter.

Have fun

Dale

 

[NigelW]

Hi Dale

A related question: what about where you decide to have the property valued as part of your investing/money making decision process?

For example if you have held a property for a few years and get it valued to see if the increased equity makes it worthwhile to seek an increase in your LOC or to refinance with another bank etc?

ps. I honestly don't know when you find time to do any work given the number of questions you answer in your community service capacity!

 

[DaleGG]

Hiya Nigel!

It's been a while since we last chatted, and I hope that you're fit and well.

As the valuation was a part of your investing activities, it is tax deductible - it's just a matter of whether or not it is one claim, or, over a couple of years.

I think it will be over a couple of years because the expense was still incurred as part of you borrowing money.

have fun

Dale

 

[NigelW]

Originally posted by DaleGG
Hiya Nigel!

It's been a while since we last chatted, and I hope that you're fit and well.

As the valuation was a part of your investing activities, it is tax deductible - it's just a matter of whether or not it is one claim, or, over a couple of years.

I think it will be over a couple of years because the expense was still incurred as part of you borrowing money.

have fun

Dale

Thanks Dale! It has been a long time. Don't think I was fit last time we spoke and unfortunately not much time to rectify the situation

Sorry to harp on, but would your opinion differ if the valuation was to help decide whether to sell and not whether to refinance?

ps. I also preferred Kevin Munro's web site and materials to Batten's.

Cheers
N.

 

[DaleGG]

Hiya Nigel

>It has been a long time. Don't think I was fit last time we spoke >and unfortunately not much time to rectify the >situation

I know the problem!!!!!!!!!!!!



>Sorry to harp on, but would your opinion differ if the valuation >was to help decide whether to sell and not whether to >refinance?


Yes, at that stage the cost is in relation to the sale and is therfore part of the CGT calculation.

>ps. I also preferred Kevin Munro's web site and materials to >Batten's.

Chris batten's book arrived today. I haven't read it yet, but flicking through it looks a little skinny. Hopefully, I'll have more reports on this tomorrow.

Have fun

Dale


Cheers
N. [/B][/QUOTE]