Real estate fees
Question from Megan updated on 6th July 2020:
We are in the business of renting out properties. We have seven rentals but we are now selling one rental (that we have owned for 16 years) to buy two units with a better yield. Are the real estate sale fees for the sale of the one rental property claimable as an expense?
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Our expert Mark Withers responded:
No, the estate agents fees are a capital cost of disposal as they have no nexus with rental income. The accounting for them is to net them off against the sale proceeds and dispose of the property from the books at the net amount.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
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