Income Tax Assessment Act 1997
There are a number of incidental costs you may have incurred. Except for the ninth , they are costs you may have incurred:
(a) to *acquire a *CGT asset; or
(b) that relate to a *CGT event.
The first is remuneration for the services of a surveyor, valuer, auctioneer, accountant, broker, *agent, consultant or legal adviser. However, remuneration for professional advice about the operation of this Act is not included unless it is provided by a *recognised tax adviser.
Expenditure for professional advice about taxation incurred before 1 July 1989 does not form part of the cost base of a CGT asset: see section 110-35 of the Income Tax (Transitional Provisions) Act 1997 .
The second is costs of transfer. 110-35(4)
The third is stamp duty or other similar duty. 110-35(5)
The fourth is:
(a) if you *acquired a *CGT asset - costs of advertising or marketing to find a seller; or
(b) if a *CGT event happened - costs of advertising or marketing to find a buyer.
The fifth is costs relating to the making of any valuation or apportionment for the purposes of this Part or Part 3-3. 110-35(7)
The sixth is search fees relating to a *CGT asset.
The seventh is the cost of a conveyancing kit (or a similar cost).
The eighth is borrowing expenses (such as loan application fees and mortgage discharge fees).
The ninth is expenditure that:
(a) is incurred by the *head company of a *consolidated group or *MEC group to an entity that is not a *member of the group; and
(b) reasonably relates to a *CGT asset *held by the head company; and
(c) is incurred because of a transaction that is between members of the group.
Land is transferred by one company to another company. The companies are members of a consolidated group. Stamp duty is payable as a result of the transaction.
The transaction has no taxation consequences because of its intra-group nature.
The stamp duty is included in the cost base and reduced cost base of the land.
Intra-group assets are not held by the head company because of the operation of subsection 701-1(1) (the single entity rule). An example of an intra-group asset is a debt owed by a member of the consolidated group to another member of the group.
The tenth is termination or other similar fees incurred as a direct result of your ownership of a *CGT asset ending.