Hi All,
I’m sure this will be a simple qu but i can’t seem to find any answers on the ATO website. Could someone tell me what to type in the ATO search or lead me astray here?
I have just purchased a property that I intend to occupy in about a years time.
Qu.1) During this first year, the property will be available for lease but I’m not going to rent it out. Is the interest still tax deductible?
Qu.2) If i do capital works (improvements) in the mean time, then get it revalued when I occupy the place, does CGT occur ONLY on that first difference in value? ie. if in 1yr it increased by $20K then I move in for 20 years then decide to sell (for some strange reason) is the CGT still effective on that $20K?
Qu.3) Is there a minimum time that I can change my mind, move in as my PPOR and claim the FHOG? this one, I’ll make a few phone calls with.
ta,
T.Qu.1) During this first year, the property will be available for lease but I’m not going to rent it out. Is the interest still tax deductible?
Clearly it is not available for lease.
Minimum timeframe to occupy for the FHOG is for 6 months starting within the first 12 months of ownership.
Better get some professional advice my friend.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Tikki,
If the property is vacant for a calendar year then clearly it wasn’t available for rent. I am sure the ‘suits’ from the ATO would clearly see that this wasn’t a typical rental property.
If however you were talking about the remainder of this financial year (3 weeks) you may have a case provided you had evidence of advertising, discussions with a PM and so on to show that you were actively seeking a tenant.
The ATO has apparently moved to a process of apportioning growth over the life of the property and determining CG in relation to the amount of time it was an IP.
But in all matter tax, seek the advice of an expert not some ‘joker’ on the ‘net’
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by The Adviser:Qu.3) Is there a minimum time that I can change my mind, move in as my PPOR and claim the FHOG? this one, I’ll make a few phone calls with.
You have 364 days to decide to move in so you are eligible for the FHOG. As Derek said, you need to stay in it for 6 consecutive months.
Hi Rob,
Thanks for the acknowkedgement but Simon is the wiz on FHOG matters[biggrin]
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
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