purchasing costs- buyer agent fee
- Thread starter bez23
- Start date
Capital...Is it part of the cost base ??
ATO formed view in ID 2009/9 its non-deductible .This ID is a bit wierd since they focus on the issue of subsequent property manager and invoices. However it appears they may allow it to form part of the cost base if you read here http://www.ato.gov.au/Individuals/I...-properties/Rental-properties-2012-13/?page=9. [ATO's new site is impossible to hyperlink sorry- Google ATO buyers agent] Note it says "may" !!
Unsure why this view is different from that of interstate travel to buy an IP..Preliminary expense which doesnt form part of the cost base.
ATO formed view in ID 2009/9 its non-deductible .This ID is a bit wierd since they focus on the issue of subsequent property manager and invoices. However it appears they may allow it to form part of the cost base if you read here http://www.ato.gov.au/Individuals/I...-properties/Rental-properties-2012-13/?page=9. [ATO's new site is impossible to hyperlink sorry- Google ATO buyers agent] Note it says "may" !!
Unsure why this view is different from that of interstate travel to buy an IP..Preliminary expense which doesnt form part of the cost base.
Buyers Agent fees get added to the cost base (like solicitors fees etc). If you borrow for them, then the interest is tax deductible. The fees themselves are not deductible until you sell and are taken into account for CGT calcs. See attachment ATO ID (interpretive decision).
ID 2003/361
It must be incidental to the actual asset acquired. They do not get added to the cost base unless they are successful. In other words if any recommendation falls through and you end up finding a property yourself then you have done your dough.
