Legal expenses

Warning:

This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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Some legal expenses incurred in producing your rental income are deductible -for instance, the cost of evicting a non-paying tenant.

Most legal expenses, however, are of a capital nature and are therefore not deductible. These include costs of:

• purchasing or selling your property
• resisting land resumption
• defending your title to the property.

Non-deductible legal expenses may, however, form part of the cost base of your property for capital gains tax purposes. For more information see the publication Guide to capital gains tax. See also Capital gains tax in this publication.