Income Tax Assessment Act 1997
View history note
Hide history noteThere 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.
110-35(2)
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.
Note:
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 .
110-35(3)
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.
110-35(6)
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.
110-35(8)
The seventh is the cost of a conveyancing kit (or a similar cost).
110-35(9)
The eighth is borrowing expenses (such as loan application fees and mortgage discharge fees).
110-35(10)
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.
Example:
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.
Note:
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.
110-35(11)
The tenth is termination or other similar fees incurred as a direct result of your ownership of a *CGT asset ending.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
