Selling and legal costs

[coolcup69]

Hi there

Are selling (eg advertising) and legal (eg solicitor) costs deductible if you incur them in relation to trying to sell a property but then withdraw the property from the market because you decide not to sell it / cannot sell it?

I know if the property sells, they go against the sale price in calculating CGT. I was just wondering what happens if you don't end up selling the property?

Thanks

 

[Terry_w]

Hi there

Are selling (eg advertising) and legal (eg solicitor) costs deductible if you incur them in relation to trying to sell a property but then withdraw the property from the market because you decide not to sell it / cannot sell it?

I know if the property sells, they go against the sale price in calculating CGT. I was just wondering what happens if you don't end up selling the property?

Thanks

Possibly against CGT if you do later sell - assuming it is an investment.

 

[coolcup69]

Possibly against CGT if you do later sell - assuming it is an investment.

Ok, so it just beefs up the cost base rather than being deductible immediately? Yes, it is an investment property

 

[Paul@PFI]

Selling Costs - failed sale

Those costs are CGT third element costs which boost the cost base so when it sells later it lowers the gain.

However if a failed sale results in a forfeited deposit then a CGT event is triggered and the deposit less the costs would be a CGT issue at that time.

Keep a good CGT record and retain all documents. In 20 years time you WONT find them.

Paul
www.pricefinancial.com.au

 

[coolcup69]

Those costs are CGT third element costs which boost the cost base so when it sells later it lowers the gain.

However if a failed sale results in a forfeited deposit then a CGT event is triggered and the deposit less the costs would be a CGT issue at that time.

Keep a good CGT record and retain all documents. In 20 years time you WONT find them.

Paul
www.pricefinancial.com.au

Thanks for the clear response Paul. Much appreciated.