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Regarding Transfer Lodgment Fee

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Hi there,

 

Just want to know whether Transfer lodment fee is tax deductable ?

 

I have sold my investment property, can I add Transfer lodment fee to Cost Base while calculating the CGT?

 

Thanks,

Suresh

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Hi @sureshguduri

 

Thanks for your question.

 

You can't claim a tax deduction as such but you can add the transfer fees to the cost base when working out the capital gain.

 

The cost base of a capital gains tax (CGT) asset is generally the cost of the asset when it was bought. It also includes certain other costs associated with acquiring, holding and disposing of the asset.

 

The cost base of a CGT asset is made up of five elements. The amount for each element needs to be worked out, then added together to work out the cost base of the CGT asset.

 

The second element is the incidental costs of acquiring the CST asset or that relate to the CGT event. There are 10 incidental costs that may have been incurred in acquiring the asset, or for the CGT event that happens to it, including its disposal. One of those costs is the costs of transfer.

 

If you would like to read about CGT in more detail, check out the guide to capital gains tax 2019 page on our website.

 

What is the cost base provides specific information on how to calculate the cost base.

 

Hope this helps.

 

Thanks,

 

ChrisR

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Best answer

ATO Certified

TaxTime Support

Replies 0

Hi @sureshguduri

 

Thanks for your question.

 

You can't claim a tax deduction as such but you can add the transfer fees to the cost base when working out the capital gain.

 

The cost base of a capital gains tax (CGT) asset is generally the cost of the asset when it was bought. It also includes certain other costs associated with acquiring, holding and disposing of the asset.

 

The cost base of a CGT asset is made up of five elements. The amount for each element needs to be worked out, then added together to work out the cost base of the CGT asset.

 

The second element is the incidental costs of acquiring the CST asset or that relate to the CGT event. There are 10 incidental costs that may have been incurred in acquiring the asset, or for the CGT event that happens to it, including its disposal. One of those costs is the costs of transfer.

 

If you would like to read about CGT in more detail, check out the guide to capital gains tax 2019 page on our website.

 

What is the cost base provides specific information on how to calculate the cost base.

 

Hope this helps.

 

Thanks,

 

ChrisR

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