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Edited version of private advice
Authorisation Number: 1051842075399
Date of advice: 24 May 2021
Ruling
Subject: Rental expenses - lease document expenses
Question
Are you entitled to a deduction for the stamp duty cost incurred in acquiring a leasehold interest for a property which is used for income producing purposes?
Answer
Yes.
A deduction is allowed under section 25-20 of the Income Tax Assessment Act 1997 (ITAA 1997) for stamp duty, preparation and registration costs you incur on the lease of a property to the extent that you have used or will use the property as a rental property (as per our Rental properties 2020 guide). You are entitled to a deduction in the income year the cost was incurred as the cost is a lease document expense incurred in relation to a property that you will use solely as a rental property.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You purchased a leasehold interest in the property located at XXXX.
A contract was entered into on XXXX with settlement occurring on XXXX.
You have incurred stamp duty expenses in relation to stamping of the sale contract for the purchase of the leasehold interest in the property.
The property is currently rented and will be used solely for income producing purposes.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 25-20
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