Are buyer's agent fees tax deductible?

It's one of the first questions investors ask, and the answer depends on what you're buying.

Buying an investment property

The buyer's agent fee is generally treated as a capital cost. Rather than an upfront deduction, it's typically added to the property's cost base, which reduces your capital gain (and the CGT payable) when you eventually sell. It is generally not claimed against your rental income in year one.

Buying your own home

Fees on a principal place of residence are generally a private expense and not tax deductible, though they still buy you a better price and less stress.

• Investment, usually added to the cost base (reduces future CGT).
• Owner-occupier, generally not deductible.
• SMSF purchase, treatment differs again; get specific advice.
• Always, confirm with your accountant for your situation.

We work alongside your accountant and broker so the structure is right before you buy. This is general information, not tax advice.