Land Tax & Stamp Duty


Question:Posted 4th of March, 2016When an Investment property/house/building  is negatively geared – Is Land Tax and Stamp duty –Tax deductible ?Answer:Stamp duty on the purchase of the property is not immediately deductible, rather it forms part of the cost base for Capital Gains Tax (CGT) purposes which is relevant when you come to sell your property and work out your capital gain or loss. By contrast, stamp duty on the any mortgage you take out is deductible over five years – as a borrowing expense.With land tax, this is deductible immediately (i.e. in the year it is paid).