Home | Log in | Join Now! | Blog | Contact    Subscribe to the InvestEd Forum feed (new threads) via RSS
InvestEd :: Wealth Education for Australian Investors

Deposit bonds for IP

 
LinkBack Thread Tools
Old 28-01-2010, 06:02 PM   #1
Member
 
Posts: 8
Join Date: Mar 2009
Location: Canberra, ACT
Deposit bonds for IP

Hi all

I understand that certain costs associated with purchasing/selling an IP (real estate commission, stamp duty, legal fees etc.) are not deductible but can be used to reduce the cost base when calculating CGT liability post sale.

Does anyone know if the fee associated with a deposit bond falls into the same category? I figure it should given it's a cost in acquiring an income producing asset, but just wanted to see if anyone out there knew for sure.

Thanks
gonz_7 is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 28-01-2010, 10:22 PM   #2
Reid Consultants
 
Posts: 149
Join Date: Jul 2009
Location: Williamstown Vic
My understanding is that the fee for a deposit bond are treated similar to acquisition costs and form part of the capital base and are not deductible for income purposes.

I am not a tax specialist so it is better to check with a competent tax accountant who deals with property investors.
Greg
GregR is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 24-05-2010, 02:38 PM   #3
Member
 
Posts: 33
Join Date: Apr 2010
Location: Melbourne, Victoria
Smile

Quote:
Originally Posted by gonz_7 View Post
Hi all

I understand that certain costs associated with purchasing/selling an IP (real estate commission, stamp duty, legal fees etc.) are not deductible but can be used to reduce the cost base when calculating CGT liability post sale.

Does anyone know if the fee associated with a deposit bond falls into the same category? I figure it should given it's a cost in acquiring an income producing asset, but just wanted to see if anyone out there knew for sure.

Thanks
Hi Gonz,

Yes, this should be a purchase cost that is deductible upon disposition of the property, as is mortgage insurance and buyers advocate fees in addition to the other items you've listed.

Happy to recommend a good accountant if you wish, if so please PM me.
__________________
Rentwise makes self-managing easy and cheap!
www.rentwise.com.au

The Rentwise Blog: handy tips for self-managing landlords.
blog.rentwise.com.au
KateMelb is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 24-05-2010, 10:10 PM   #4
D&K
Member
 
Posts: 205
Join Date: Nov 2005
Location: Canberra
Hi Gonz_7,

I didn't spot this earlier but I note that you're from Canberra, where everything is lease-hold. Stamp duty on a lease is deductible in the first year, which applies to ACT property if buying there and helps with the first tax return! This is distinct from borrowing costs, which may be claimed over the first 5 years or go into the capital base - can't recall.

Cheers, Dave
__________________
This is a general comment, opinion or view on experience and does not constitute advice. Spelling and grammatical errors included to add character and originality!
D&K is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Bonds Johny_come_lately Investing Strategies 10 22-01-2010 03:26 PM
Bonds to be Renaissance man for investors Sim Investing Strategies 0 14-04-2009 01:16 PM
Investing in bonds? ashwright Investing Strategies 7 09-09-2008 11:45 AM
Deposit safety to be guaranteed Tropo General Investing Discussion 2 03-06-2008 09:53 PM
"Expression of interest" deposit Jacque Real Estate 3 25-01-2007 04:25 PM


All times are GMT +10. The time now is 09:47 AM.

Copyright © 2006 Investor Education Pty Ltd (ACN 114 677 226)
Site by Hampel Group