Can I claim stamp duty on my investment property loan?

[RogueLark99]

Is stamp duty deductible for an IP?
For example, I borrow $500k for an IP, and there is $20k stamp duty. Can the loan then be $520k, interest deductible?
Thanks, guys.

 

[djblakonishi]

Stamp duty isn't a tax deduction. It adds to your cost base, which reduces the capital gains tax you pay when you sell. Interest on a loan secured to pay for it is

 

[June]

Only if you have equity in another property and sufficient borrowing capacity

 

[JpnVenBilboSiyGuy]

You can't deduct money spent purchasing an investment.

 

[3ttstuff5]

Yes, most will borrow 100% plus cost if there’s sufficient equity. So, the whole loan is deductible.

 

[HalcyonHost]

Generally, you can deduct interest on money you borrow to pay stamp duty. The stamp duty itself is part of your cost base, and you can deduct it when you sell. For personalised advice, check with your accountant.

 

[Absordicus]

Interest yes, obviously. Stamp duty is usually cost base i.e., it comes off the sale price at the end and that’s the bottom line.