Stamp Duty
- Thread starter molly1a
- Start date
I stand corrected, thanks Mike.
Stamp duty is added to the cost base and reduces your capital gain when you sell.
Unless the stamp duty is on leasehold property e.g. ACT property where the stamp duty is deductible when incurred.
Unless the stamp duty is on leasehold property e.g. ACT property where the stamp duty is deductible when incurred.
Of course if the land being acquired is a trading asset (ie a prop developer) there is no cost-base. The duty adds to the acquisition cost so that the carrying value of trading stock is increased. No CGT cost-base. Ditto legal costs, surveyors etc. Then there can be the apportionment issues of that actual cost which requires the total cost to be split into seperate lots using a reasonable basis.
And I have come accross developers who had both...A larger potion was trading stock and a portion was "keep" hence a CGT asset and the associated GST issues. Not smart but it happens.
Too many posts assume CGT is the only form of taxation applying to property.
Mike - You keeping dry? Thoughts go to all in the Phillipines at the moment.
And I have come accross developers who had both...A larger potion was trading stock and a portion was "keep" hence a CGT asset and the associated GST issues. Not smart but it happens.
Too many posts assume CGT is the only form of taxation applying to property.
Mike - You keeping dry? Thoughts go to all in the Phillipines at the moment.
