Here are the deductions you can claim for costs incurred when calculating capital gains for tax purposes, explained in simple language with real-life examples:

1. Brokerage Fees: You can deduct the fees paid to a broker or agent who helped you sell your asset. For instance, if you sold shares through a stockbroker, you can subtract the brokerage fees from the total amount you received from selling the shares.
2. Legal and Professional Fees: You can deduct the fees paid to lawyers, advocates, or professionals for services related to the sale. This includes fees for drafting agreements or seeking legal advice. For example, if you hired a lawyer to help with the sale of your property, the fees you paid to them can be deducted.
3. Transfer Expenses: You can deduct expenses related to transferring the ownership of the asset, such as stamp duty, registration charges, or transfer fees. These expenses are directly linked to transferring the asset’s ownership. For instance, if you sold a piece of land, you can deduct the expenses you paid for registering the sale.
4. Improvement Costs: If you spent money on improving the asset before selling it, you can deduct those costs. For example, if you renovated a house or made significant repairs before selling it, the expenses you incurred for those improvements can be deducted.
5. Advertising and Marketing Expenses: You can deduct the expenses you paid for advertising and marketing the asset to find potential buyers. This includes costs for newspaper ads, online listings, or signage. For instance, if you paid for newspaper ads to promote the sale of your car, those expenses can be deducted.
6. Valuation Expenses: If you hired a registered valuer to determine the fair market value of the asset, you can deduct their fees. This is relevant when establishing the accurate value of the asset for tax purposes.
7. Tax Consultancy Fees: You can deduct the fees you paid to tax consultants or professionals who helped you with tax planning or calculating the capital gains. For example, if you sought advice from a tax consultant regarding the tax implications of selling your property, you can deduct their fees.

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Remember to keep proper records of these expenses, such as receipts and invoices, to support your deduction claims. It is advisable to consult with a tax professional or refer to the Income Tax Act for specific details and eligibility criteria related to deduction claims.