Interest Costs

[imonmyway]

Just a quick question?

I bought an IP and borrowed the stamp duty costs as well is the interest on this tax deductable as well?

 

[jaycee]

I bloody well hope so !

 

[yo yo ma]

Yes the interest is deductable; the stamp duty is added to the cost base.

The ATO booklet Rental Properties 2007 has information on p9 about aquisition and disposal costs.
"You cannot claim a deduction for the costs of aquiring or disposing of your rental property... However, these costs may form part of the cost base of the property for CGT purposes."
Steve

 

[imonmyway]

ok thanks, i used software to work out my costs im just trying to breakdown how its calculated, thanks for the link to the book

 

[stirling]

Stamp Duty on loan is tax deductible, stamp duty on transfer is part of the cost base.

 

[geoffw]

Stamp Duty on loan is tax deductible, stamp duty on transfer is part of the cost base.

Except if you buy a property in the ACT, where stamp duty on transfer is deductible. This is because ACT properties are leasehold, not freehold.