Loan payout on selling IP? CGT Loss or deduction?

[Pushka]

Hi all

If we sell an IP and payout a fixed loan early, with the exit cost of this possibly around $40,000; is this amount tax deductible in the same financial year (and therefore almost palatable) or does it come into the CGT calculation (less palatable as we may make a loss anyway)

 

[Rob G.]

Check out s.25-30 and TR 93/7.

Loan exit fees are usually immediately deductible to the extent the property was used to produce your assessable income.

Be sure to get your details checked by your Accountant before doing anything !

Cheers,

Rob