Tax Deductibility of IP Purchase Costs in ACT

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Reply: 1
From: Bob Quiggin


Jas,

Speaking as the Bob who started all this (and I note that I used to use the tag "Not a lawyer, not an accountant"), the leases in the ACT are not perpetual leases so that part doesn't apply.

I got slightly different advice from my accountant and my lawyer but stamp duty is tax deductible in the year of purchase, as are most or all legal costs because you are taking over a lease, you are not buying freehold.

My understanding is that the 99 years commences from the first lease date of the property, so my house in O'Connor probably has about 50 years to run whereas there are some places in Dunlop that will expire in 2101.

If you're looking at buying here, get professional advice. However, the market is so hot here it's not worth buying (shut up, everyone!)

Cheers,

Bob
Not a lawyer, not an accountant
 
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Reply: 1.1
From: Jas



> I got slightly different advice from my accountant and my lawyer but
stamp
> duty is tax deductible in the year of purchase, as are most or all
legal
> costs because you are taking over a lease, you are not buying
freehold.
>

Thanks bob!

> My understanding is that the 99 years commences from the first lease
date
> of the property, so my house in O'Connor probably has about 50 years
to
> run whereas there are some places in Dunlop that will expire in 2101.
>
> If you're looking at buying here, get professional advice. However,
the
> market is so hot here it's not worth buying (shut up, everyone!)


As for buying in the ACT... I've done it already, but my accountant tis
a Sydney guy, so I wanted to get local advice :)

Jas
 
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