Are Property Buyers Agents Fees Tax Deductible ?

Deductibility of expenses : property buyers agent’s fee says that if someone engages a buyer’s agent to help purchase an investment rental property then this fee is not tax deductible. However it doesn’t tell us whether the costs are a capital cost to be added to the ‘cost base’.

Capital gains tax: Cost base – consultant’s fees tell us that buyers agents fees are added to the cost base of the asset. However this will only be relevant where a successful purchase has been made i.e. a buyer’s agent was engaged to find a property and eventually you purchased that property. If you paid a buyer’s agent to find a property and you didn’t eventually buy the property then unfortunately those costs are not deductible and don’t get added to the cost base of any future property.

If the fee being charged is to evaluate a current property portfolio and provide recommendations for improving the rental income stream on the current portfolio then this would be tax deductible as it relates to current property investments.

(as always please speak to your accountant or property tax specialist for more information)


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