The Acquisition Costs section allows you to calculate all the costs involved in purchasing the land for your development project.
Acquisition Cost is basically all the costs involved in purchasing the land. It consists of the land value, percentage of tax (if applicable), stamp duty, and the fee paid to lawyers or conveyancers.
1. Enter the amount that you have/will pay for the property in the Land Value field.
2. The next blank row you see is for the tax type. If a tax type is applicable, select the Yes from the dropdown list. If a tax type is selected, then it will be calculated and displayed in this row.
Note: When you select Yes in this field, a warning message check will be displayed in the row.
This indicates that you have to check if a Margin Scheme is applicable to your property. The Margin Scheme is applicable in Australia. The Margin Scheme is not applicable to commercial properties.
3. Enter the stamp duty fee applicable to your property in the Stamp Duty field. If stamp duty is not applicable for your property, then enter zero in this field. Stamp duty is an ad valorem tax imposed at the time of land purchase and is calculated on the value of the land. The name for this tax is different in different countries.
4. Enter the fee percentage paid to lawyers/conveyancers to purchase the land in the Legals Acquisition field. Legals Acquisition is the percentage of the cost of the land that you pay to a lawyer/conveyancer to deal with all the legal aspects of your property purchase.