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  • Profile photo of T CaineT Caine
    Member
    @t-caine
    Join Date: 2010
    Post Count: 4

    Hi All

    Can anyone clarify if i could claim a property as a an investment and get the tax deductions for the following situation?

    Purchase first property in Jan 2009 and receive FHOG then rent it out fro 11 months, then move into the property in the twelth month to satisfy FHOG Conditions.

    Is the period that is was tenanted for considered an investment property in this situation?

    Any help is much appreciated.

    Thanks

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Yes you could but depending on which State you are in mind have an issue claiming the OO Stamp Duty.

    Richard Taylor | Australia's leading private lender

    Profile photo of T CaineT Caine
    Member
    @t-caine
    Join Date: 2010
    Post Count: 4

    Hey Richard

    Thanks for your help there. Im in NSW.  With OO deduction on Stamp Duty  exempt. Would the interest and other property costs still be deductible?

    Profile photo of YoungInvestorYoungInvestor
    Participant
    @younginvestor
    Join Date: 2003
    Post Count: 377

    Hi T Caine,

    What you have described is exactly how I bought my first IP

    ie: Purchase, rent for 11 months, and then move in for 6 months.

    You will only be able to claim deductions during the period for which you are renting the place out. So in short, no deductions for the 6 months you are living there as a first home owner to satisfy the grant.

    Hope this helps.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Costs of a property while rented out are deductible.

    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

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

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