borrowing expense

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(Initiate)Initiate

16 July 2022

Hi,

I purchased a property at the start of the year as an investment to rent out. I obtained a mortgage from my bank and purchased a property using a settlement agent.

I am confused regarding claiming the stamp duty as a borrowing expense as you can claim ’stamp duty charged on the mortgage’ as a borrowing expense.

My bank only charged a settlement fee and a title search fee, but no stamp duty.

My settlement agent charged for “Transfer Duty on the Contract (Residential)”. Is this ‘stamp duty’? Can claim this as a borrowing expense or as CGT (acquisition costs)?

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Bruce4Tax

(Taxicorn)Taxicorn

16 July 2022

’stamp duty charged on the mortgage’ as a borrowing expense.

If bank did not charge, the you are in a state where it has been abolished.

Stamp duty on transfer is not a borrowing expense - therefore it is part of CGT cost base, except in ACT etc where ist is deductible as a lease expense.

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Bruce4Tax

(Taxicorn)Taxicorn

16 July 2022

’stamp duty charged on the mortgage’ as a borrowing expense.

If bank did not charge, the you are in a state where it has been abolished.

Stamp duty on transfer is not a borrowing expense - therefore it is part of CGT cost base, except in ACT etc where ist is deductible as a lease expense.

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