which items form part of cost base?

Hi All,

I have been reading Rental Properties ATO Tax guide but still not sure of below items , as to what is deductible straightaway, or over a period of time say 5 years or forms part of cost base

1) Interest in advance: Prop been rented for 3 months in a financial year because it was bought in Apr close to financial year end so rental income say for 3 months is 3K and interest in advance before 30th june is 20K. Is 20K deductible in full for a given financial year?

2) Stamp Duty: Deductible in full for a given financial year or forms part of cost base?

3) Building and Pest Inspection report: Deductible in full for a given financial year or forms part of cost base?

4) Conveyancer fees for property purchase: Deductible in full for a given financial year or forms part of cost base?

5) Title Insurance premium: Its different from Bldg, Landlord and contents insurance. Premium is paid once only for the lifetime and it covers you against illegal bldg works, zoning works, forgery to claim ownership, etc. Deductible in full for a given financial year or forms part of cost base?

6) Government Title search fee: Deductible in full for a given financial year or forms part of cost base? {Approx 10$}

7) Registration-Fee Mortage: Deductible in full for a given financial year or forms part of cost base? {Approx 100$}

8) Registration-Fee Mortage Release: Deductible in full for a given financial year or forms part of cost base? {Approx 100$}

9) Registration Fee - Transfer of Land: Deductible in full for a given financial year or forms part of cost base? {Approx 1000$}

10) Depreciation schedule report fee: Its a one off fee and schedule is valid for 20 years. Deductible in full for a given financial year or forms part of cost base or fee deduction is pro rata for each year (i.e. say 700$ has been paid for the report, can that 700 be claimed in the given financial year or 700 has to be claimed over 20 years?)

11) Depreciation deductions: I am sure of this one, it can be claimed in full for each year using either Prime cost method or diminishing value method. Got report from Scott.


I know there are well informed people on the forum Terry, Mike, Peter, others who would be be able to assit.

Note: IP is in VIC

Thanks in advance.
 
Hi All,

I have been reading Rental Properties ATO Tax guide but still not sure of below items , as to what is deductible straightaway, or over a period of time say 5 years or forms part of cost base

1) Interest in advance: Prop been rented for 3 months in a financial year because it was bought in Apr close to financial year end so rental income say for 3 months is 3K and interest in advance before 30th june is 20K. Is 20K deductible in full for a given financial year? Deductible in the year it is paid unless paying more than 13 months ahead

2) Stamp Duty: Deductible in full for a given financial year or forms part of cost base?Part of the cost base unless you are in the ACT

3) Building and Pest Inspection report: Deductible in full for a given financial year or forms part of cost base?Part of the cost base

4) Conveyancer fees for property purchase: Deductible in full for a given financial year or forms part of cost base?Part of the cost base

5) Title Insurance premium: Its different from Bldg, Landlord and contents insurance. Premium is paid once only for the lifetime and it covers you against illegal bldg works, zoning works, forgery to claim ownership, etc. Deductible in full for a given financial year or forms part of cost base?Part of the cost base

6) Government Title search fee: Deductible in full for a given financial year or forms part of cost base? {Approx 10$}Part of the cost base unless it was required by your lender when it can be claimed over 5 years on a pro rata basis

7) Registration-Fee Mortage: Deductible in full for a given financial year or forms part of cost base? {Approx 100$}Claim over 5 years as a borrowing expense

8) Registration-Fee Mortage Release: Deductible in full for a given financial year or forms part of cost base? {Approx 100$}If the interest that was paid on the mortgage being discharged is non deductible then nothing, if it is a discharge where the interest being paid on the debt is deductible then in full

9) Registration Fee - Transfer of Land: Deductible in full for a given financial year or forms part of cost base? {Approx 1000$}cost base

10) Depreciation schedule report fee: Its a one off fee and schedule is valid for 20 years. Deductible in full for a given financial year or forms part of cost base or fee deduction is pro rata for each year (i.e. say 700$ has been paid for the report, can that 700 be claimed in the given financial year or 700 has to be claimed over 20 years?)Deductible in the year the money is spent

11) Depreciation deductions: I am sure of this one, it can be claimed in full for each year using either Prime cost method or diminishing value method. Got report from Scott.


I know there are well informed people on the forum Terry, Mike, Peter, others who would be be able to assit.

Note: IP is in VIC

Thanks in advance.

As a general rule your costs of having the title transferred to your name and the costs of due diligence in relation to the purchase eg pest and building are not considered to be costs incurred in gaining assessable income
 
Back
Top