We are settling on a house early next month and have a relocation loan while we are trying to sell ours.
To recoup some of our losses I have heard you can claim back the stamp duty on the new house by renting it out for 6 months.
Can we rent out the new one, sell ours and rent somewhere else for six months and then claim back the stamp duty and move into the new one?Hello Staggerlee
Sorry but that's not true. Stamp duty forms part of the cost base and only comes into play for the purpose of calculating the CG on a property if it's applicable.
Perhaps you can read the info on this site to understand about tax deductions for an investment property.
http://www.propertyinvestment.net.au/tax-deduction.htm
You might like to look into doing it the other way round if you're not emotionally attached to living in your own property.
First live in the home for lets say 6 months and then move and rent it out for up to 6 years. This way many expenses, the biggest being interest on your loan, become tax deductible without ruining the capital gains tax free status of your home.Your accountant will be able to explain this and help you crunch the numbers to see if it's worth while for you.
Hope this helps
ElkaIn the ACT you might be able to as there you are actually transferring a lease
Thanks Elka & crj,
Sorry, I should of mentioned we're in the A.C.T.
I'll consult my accountant and get back to you with the result.
I saw the accountant yesterday.
She said I could go ahead with it and ask for a ruling as she cannot find evidence of anyone trying it and the legislation is not black and white on the issue.
She suspects I would only gain the deduction as a percentage of the period the house was rented out and doesn't recommend I go to the trouble.
My wife spoke to a friend of hers who claimed 50% of theirs when they rented it out for a year….
You must be logged in to reply to this topic. If you don't have an account, you can register here.
