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pre-contract disclosure statement tax claim?

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  • pre-contract disclosure statement tax claim?

    quick question on tax claims

    when a property,(apartment) is sold

    can the cost of the pre-contract disclosure statement be claimed from tax?
    have you defeated them?
    your demons

  • #2
    Not usually. There's no nexus to taxable income.

    If the apartment is a trade and you're paying tax on the profits from sale, you could claim it. Along with your REA fees.
    AAT Accounting Services - Property Specialist - [email protected]
    Fixed price fees and quick knowledgeable service for property investors & traders!

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    • #3
      Thanks, makes sense
      have you defeated them?
      your demons

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      • #4
        Are you paying your lawyer to complete this, so it is part of your legal fees for the transaction?

        If so, if under $10,000 per year for the entity, then would be claimable.

        Ross
        Book a free chat here
        Ross Barnett - Property Accountant

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        • #5
          An excellent point! Not something I considered as I've just had a couple clients order this direct from the bodycorp; presumably to save costs. But as a result of tax claims it might not end up saving anything!

          While you're at it, why not get your lawyer to organise minor capital improvements to your property? Insulation going to cost you $5k? Get your lawyer to do it for you, pay him $1k on top for his work, and the $6k becomes claimable - net cost $4k, $1k savings!
          AAT Accounting Services - Property Specialist - [email protected]
          Fixed price fees and quick knowledgeable service for property investors & traders!

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          • #6
            Anthony

            I am completely certain* that a lawyer will do the notice MUCH more cheaply than the body corporate.

            Actually, having seen the charges of some BC secretaries, maybe they would?!?

            *not really

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            • #7
              Doesn't need to be cheaper, just needs to be less than 35% more expensive at company tax rates, or 50% at top personal!
              AAT Accounting Services - Property Specialist - [email protected]
              Fixed price fees and quick knowledgeable service for property investors & traders!

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