Property transfer tax: Can I write it off on investment property?

[blankall]

The title says it all. Almost criminal that the government can charge this much. Can I get some of it back by writing it off against any of my other income?

[Winsor_Pilates]

I assume you mean in BC?
It's not tax deductible, and yes it's almost criminal.

Unless there's some super genius accountants who have figured something out I don't know.

[Realtor 1]

We need a solid accountant to be a part of this thread. So many tax questions that I only have the basic answers to. There has to be SOME sort of way to figure out a way to make it less painful.

[bizaro86]

I assume you mean in BC?
It's not tax deductible, and yes it's almost criminal.

Unless there's some super genius accountants who have figured something out I don't know.

Even on an investment property? Because it seems like tha t would fit the bill of an expense required to earn income that has no personal component.

[Winsor_Pilates]

Even on an investment property? Because it seems like tha t would fit the bill of an expense required to earn income that has no personal component.
As far as I know. I mostly work in BC, and deal with a lot of investors so I'm 95% sure on this; however as Realtor 1 mentioned, a good accountant really needs to be the one who answers this with certainty.

My understanding is that PTT can be considered part of the cost of purchase, and then on the sale of that property they are included when accounting for capital gains/losses. Therefore they will adjust for you at that point in a positive manor, however you can't write them off against your taxable income in the year of acquisition as a separate expense.

[bizaro86]

As far as I know. I mostly work in BC, and deal with a lot of investors so I'm 95% sure on this; however as Realtor 1 mentioned, a good accountant really needs to be the one who answers this with certainty.

My understanding is that PTT can be considered part of the cost of purchase, and then on the sale of that property they are included when accounting for capital gains/losses. Therefore they will adjust for you at that point in a positive manor, however you can't write them off against your taxable income in the year of acquisition as a separate expense.

Ahh. That makes perfect sense then, since it's a capital cost of acquiring the property.

[troutman]

http://www.sbr.gov.bc.ca/business/property_taxes/property_transfer_tax/ptt.htm

[blankall]

Thanks for the replys and yes I am in BC. I've just got a new accountant. I'm going to assume he can figure out my best options at the end of the year. There's really nothing I can do about it now, but pay it....but yes it is a ridiculous cash grab.

[Realtor 1]

Best of luck!!!