building an investment property

Viewing 5 posts - 1 through 5 (of 5 total)

dlockyer
Member
@dlockyer
Join Date: 2009
Post Count: 5
July 13, 2009 - 2:56 am
I am building a house which i intend to sell/rent out on completion and was wondering if what i have paid on stamp duty/legal fees etc late last financial year if i am allowed to claim any of that back on tax or does that only come into play when i sell the house to offset capital gains? Also i am paying off the mortgage on the land and the building loan once that commences, does that fall into the same category as the rest or is that just lost money until the house is completed because it is unrentable anyway?
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
July 13, 2009 - 5:07 am
Stamp Duty is a capital cost and added to the Cost Base when the property is sold.
Loan & borrowing costs can be claimed over a 5 year period or the lenght of the loan whichever is shorter.
They are proportionalised in the first year.
Richard Taylor | Australia's leading private lender
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 13, 2009 - 9:50 am
The interest on the loan for the land and other costs should be able to be claimed against income if your intention was to rent or sell.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
dlockyer
Member
@dlockyer
Join Date: 2009
Post Count: 5
July 14, 2009 - 12:18 am
Thanks for that guys,
So basically i can't claim stamp duty on tax but i can claim everything else like mortgage fees, (and gurantor fees?) solicitor fees etc? Its just that all other fees besides stamp duty were charged late last month so before i do my tax return i want to know what i can claim and if it would be better to see a professional (because normally i just do it myself!)
Thanks again,
Chris
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 14, 2009 - 12:34 pm
There are 2 different ways to claim things.
1. is Capital costs. These can be claimed against the capital gains when you sell. This included purchase expenses and selling expenses such as stamp duty, legal fees etc. Not loan fees
2. is general deductions and this includes general running costs and depreciation. Loan fees can only be claimed over 5 years.
go to the ATO site and get their pdf on rental properties
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au