This is a complex area and only your accountant can advise you on how to add stamp duty to the cost base of your property. You can also discuss CGT discounts and exceptions that may also apply to you. Rental deficits (i.e. the exceeding of the deductible charges for the rental of the property by the gross rent received by this property) cannot be offset by other sources of income. Brokerage commission, advertising, legal fees and stamp fees for the recruitment of subsequent tenants. Expenses related exclusively to the production of rental income and during the rental period can be reported as tax deductions. If your property is not in the ACT, stamp duty is not tax deductible. Instead, it is added to the cost base of the property, which reduces the capital gains tax when you sell the property. If it is included in the ACT, a deduction would be available, but only in the year it was made. As you originally lived in the property, no deduction is available. We recommend that you discuss the details with a reputable accountant. No, as your property is allowed for part of the base period for non-residential uses, you must claim the actual amount of deductible expenses on your rental income for YA 2020.
Could you solve the problem of the Australian Capital Territory, where you are actually buying a crown lease and not a property contract? I understand that the ACT stamp duty paid at the time of purchase is fully deductible in the FY of purchase. This deduction may be claimed only in the year in which the actual payment is made for these expenses. If you have ownership on August 30, 1, 2018 and pay stamp duty and registration fees, you can only claim these expenses for the 2018-19 fiscal year, in accordance with Section 80C. An individual and a HUF can claim this deduction on their income tax return. On July 3, 2014, Peter took out a 25-year loan of US$300,000 to purchase a rental property. Peter`s deductible credit charges were: Peter also paid $US 12,000 on the transfer of title. He cannot claim a tax deduction for these expenses, but he will be part of the cost base of the property for CGT purposes when he sells the property. Each state and territory has different calculation methods for stamp duty. Therefore, the amount of stamp duty levied for property sold in Victoria may be different for property with a similar price in New South Wales. The time limit for payment of stamp duty also varies from one State to another.
ii. the residence must be rented under a legal lease agreement between the landlord and the tenant; and if you have purchased or built a house property, you should look into the provisions of the stamp duty exemption. Stamp duty and registration fees as well as other expenses directly related to the transfer are allowed as a deduction under Article 80C. .