EXEMPT RELOCATION - EXPENSES OF SELLING A HOME
9 August 2006
If certain conditions are satisfied, the payment by an employer on behalf of an employee who is relocating to a new location for work purposes and which relate to a house sale will be exempt.
There is some confusion as to which expenses are included and which not.
The following expenses will be regarded as being incidental to the sale of a residence (and exempt):
· Stamp duty
· Advertising
· Legal services
· Agent’s services
· Discharge of mortgage
· Any similar expense
However specifically excluded is:
· Interest
· Repayment of the principal of a loan
· Loan services fees
· Discharge of mortgage and borrowing expenses that did not relate to the relevant property
· Insurance
· Rates"