Buying a Property Tax Question

lilyesp on 15/03/2022 - 20:10
Last edited 16/03/2022 - 00:59 by 1 other user

Hi all, thanks for previous reply to my q- had one more if I was planning to buy for owner occupied.

There is one property but there is lease that only expires in four months time- i.e I'll have to just move in after that time- no biggie. However am I able to claim any tax etc on interest rates since I am renting it out for 4months (however then moving in after)

The reason why I ask this question ATO states that the purpose of the loan must be investment- I'm getting the loan for owner occupied so technically not investment but it happens that the tenant will stay on for four months and thus I will be a temporary landlord.

Any thoughts?

Cherrio! Lily

• 

  bemybubble on 15/03/2022 - 20:22

  +2

  Whilst it’s income producing you can claim the interest.

  • 

    lilyesp on 15/03/2022 - 21:15

    great thanks!

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  bobbified on 15/03/2022 - 20:31

  Everything has to be proportioned - income and expenses.

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  notabank on 15/03/2022 - 22:17

  -1

  It has to be market rates and you will have a cgt event when you make this your PPOR.

  • 

    bemybubble on 16/03/2022 - 08:06

    you will have a cgt event when you make this your PPOR

    No you won't. The CGT event will only happen upon the disposal of the property.

    • 

      WreckTangle on 16/03/2022 - 13:03

      Might not even apply if OP resides in the home

    • 

      notabank on 16/03/2022 - 22:39

      -1

      Yes it will as it won't be an investment property anymore.

      If OP claims deductions on their PPOR then that's too easy for the ATO go throw the book at them.

• 

  Ozschmargain on 15/03/2022 - 22:21

  -3

  NCSWIC. WWG1WGA.

  

  Ozschmargain on 15/03/2022 - 22:21 (Collapsed - Offtopic. Show)
  • 

    Ozschmargain on 16/03/2022 - 11:26

    oi who removed the Q from the title?

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  SmiTTy on 16/03/2022 - 01:17

  May have tax implications when (if) you sell some time down the track. Might want to look into potential pro rated cgt at some point to see if it applies to you. (Although being 4 months I guess it won't be too bad)

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  thirtysixd on 16/03/2022 - 08:57

  You get a few deductions (interest etc)

  But when you sell cgt is more complicated

  We dont know your whole situation but you would get a partial cgt excemption (maybe full)

  It depends on if you already own a property, spouse, use and a few other factors