Often I’m asked about real estate fees and the tax implications involved.
So here’s some info aimed at investors that might be of benefit.
Selling agent fees or buyer agents fees are not a tax deduction. You can’t present these to your accountant and expect these fees to be used as a general deduction.
However you can use the fee to offset your capital gain/ loss when selling your property in the future.
For example, lets say you paid a $10,000 fee to the agent to find and negotiate the property transaction for you. You sold the property within 6 months and made a gain of $60,000. That $10,000 can be offset against that gain bringing it down to $50,000 and then subtracting all further costs.
Always check with your accountant to match with your personal circumstances.