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Buyer Agent Fees

Discussion in 'Accounting, Tax & Legal' started by DaveA, 21st Mar, 2007.

  1. DaveA

    DaveA Well-Known Member

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    I am just wondering how buyer fees are treated for tax purposes. Im guessing they are not a tax deduction (unless you are ruled as running a busienss).

    Are they like pest and building where the a black hole expense, or Can they be added to costs for CG purposes? I imagine they arnt deductable like borrowing expenses.
     
  2. coopranos

    coopranos Well-Known Member

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    Not deductible, but adds to the cost base for CGT.
     
  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I'm not so sure about that coopranos ... I suspect DaveA may be correct - they black hole costs just like pre-purchase inspections.

    Will get Nick to confirm either way.
     
  4. Jacque

    Jacque Team InvestEd

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    They are indeed classed as capital costs and treated accordingly upon sale of the asset. Though I'd prefer them to be classed as deductible costs :D
     
  5. NickM

    NickM Co-founder Staff Member

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    Yes Jacque is correct
     
  6. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Good stuff - glad to be corrected !
     
  7. coopranos

    coopranos Well-Known Member

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    Perhaps it would be possible for a Buyer's Agent to offer their buyers agent services for free, and charge a fee for "rent maximization education" or something similar that just happens to be the same as a buyers agent fee?
     
  8. Jacque

    Jacque Team InvestEd

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    Haha! I like the way you think coop- very creative :D
    Unfortunately, however, providing advice of this nature could be construed as financial advice, which I'm legally ;) unqualified to give.
     
  9. coopranos

    coopranos Well-Known Member

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    Jacque: "this information is to be used for educational purposes only"