selling an iP and stamp duty

[Hodge]

Tried searching the answer but no luck.

Say I purchase an ip, renovate it and sell it at a profit. Would I be able to claim stamp duty and other buying costs when the time comes calculating CGT? I understand renovation costs can be claimed but not sure on the others.

Thanks

Hodge

 

[Terry_w]

Tried searching the answer but no luck.

Say I purchase an ip, renovate it and sell it at a profit. Would I be able to claim stamp duty and other buying costs when the time comes calculating CGT? I understand renovation costs can be claimed but not sure on the others.

Thanks

Hodge

Yes. Under the CGT rules any cost you have not otherwise claimed could be used to reduce the cost base = reduce CGT.

Keep in mind the effect of the 50% disccount (if held 12 months or more).

 

[Hodge]

Thanks Terry, do you know roughly how much of the stamp duty you would be able to claim?

 

[Terry_w]

Thanks Terry, do you know roughly how much of the stamp duty you would be able to claim?

all of it?

 

[Hodge]

Really? So if I pay $30k in stamp duty and sell the IP 2 years later I'll get all of the $30k back?

 

[Terry_w]

Really? So if I pay $30k in stamp duty and sell the IP 2 years later I'll get all of the $30k back?

No, that is not how it works. You claim 100% of the expense but what you save will depend on your taxable income.

 

[Hodge]

That sounds right, had a mental blank for a minute.