Hey Brains Trust, quick question - doing taxes
We have a construction loan on land and build in NSW - IO until build complete (intended as investment purposes)
The loan started in January 2021, due for handover in November 2021. Can we claim the interest on loan from Jan 2021 to June 30?
Appreciate your thoughts and experiences
thank you, its what the tax person stated, but had to be sure. They stated it could be reduced against CGT, but we have no intent to sell.
Need a certificate of occupancy and needs to be available for rent (I.e. advertised).
They closed the loophole for claiming interest 1 July 2019 on vacant land for rental
was the property available for rent to earn income. if not then no
https://www.ato.gov.au/uploadedFiles/Content/IND/Downloads/T…
https://www.ratecity.com.au/home-loans/articles/tax-deductio…
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The short answer is yes. You can claim the interest charged on your home loan as a deduction when completing your income tax return. However, you need to be using the property to earn income by renting it out because solely residential property isn’t eligible for any tax deductions. On the other hand, if your residential property is being used to produce income like home business or a home office, you could claim some tax deductions.
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My experience with having an investment property is get an accountant if you're not 100%.
No, your place is not being used to make an income.
Thank you for everyone who contributed. Much appreciated.
Interest is only deductible when the property is actively available for rent (i.e. after handover). Therefore the interest and other holding costs you are currently paying will need to be added to your cost base for tax purposes.
https://www.ato.gov.au/Individuals/Investments-and-assets/La…