Is stamp duty tax claimable for IP?

In Canberra you can claim it in the first year.

Cheers

Jamie

It’s all leasehold in the ACT.

Cheers

Jamie

Why Rob?

Haha, I take it you’re not from around these parts Rob. Life’s good in Canberra.

Cheers

Jamie

Did you set up the $45k as a separate loan on your PPOR?

Here is the Sequence of Events (Purchase Price $320K)
15/06/10 -Paid $800 (.25% of Purchase Price)
25/06/10 -Paid $15200 (To make intial 5% deposit) from redraw of existing PPOR loan. (Variation completed 4 days late on 29/06)
29/06/10 – Variation settled with existing lender – New loan account with the increase setted up
29/07/10 – Transferred remaining 10% ($16000) + Stamp duty $9910 into Savings Account to make cheque and pay for the amount at Settlement

DAMProperty – Seperate $45K loan was setted up (29/06)

Terryw – Moved to Savings Account first. As you know Solicitor would not tell me cheque amount no earlier than the settlement day. And my lender would not deliver Cheque in my hands same day (being online lender)

Please advise if $15,200 (intial) + ($16000) + $9910(Stamp Duty) are deductible for negative gearing purpose. I can prove that I kept pushing my lender to settle varition before 5% deposit payment date.

Terry, Yep Saving Account did had around $1K at that time being my main transactional account as well.

Is there any Ray of Hope for me based on TR 2000/2 (I dont understand them fully):

First Exception – Borrowed money recouped and repaid

17. Where money borrowed and applied to a particular use (the 'relevant use') is recouped in whole or in part, in the sense that the amount or some part of it is recovered ( e.g., on the sale of an asset purchased with borrowed funds) that part of the outstanding balance of the mixed purpose line of credit debt which had been applied to the relevant use can no longer be regarded as continuing to be applied to that use. Where borrowed funds recouped are repaid to the mixed purpose sub-account in reduction of the outstanding balance, those funds have ceased to be outstanding funds used for any purpose. The effect of the repayment of the recouped funds to the mixed purpose sub-account is to reduce only that part of the outstanding line of credit debt applied to the previous use of those funds. The use of the balance of borrowed funds still outstanding is unaffected by the recoupment and repayment in these circumstances unless the amount of the sale proceeds paid into the mixed purpose sub-account exceeds the amount drawn down and applied to the relevant use (the 'relevant debt portion'). This would occur, for example, where the asset is sold at a profit and part or all of the recouped borrowed funds and profit are paid into the mixed purpose sub-account. To the extent that the payment exceeds the relevant debt portion, such excess amount (i.e., the profit component) will be taken to have reduced prorata the amounts borrowed and applied to uses other than the relevant use.

Second Exception – Refinancing mixed purpose debt

18. A taxpayer may choose to refinance a debt outstanding on a mixed purpose sub-account by borrowing an equivalent amount under two separate accounts or sub-accounts. If the sums borrowed under those two separate accounts are equivalent to the respective income producing and non-income producing parts of the existing outstanding debt, we accept that interest accrued on the debt incurred in refinancing the income producing portion of the mixed purpose debt will be deductible.

Terry, Thanks. Cant't I argue that there was no way I could produce Cheque from my lender on short notice and transfer into Saving account was only a medium (Which Is confirmed by their short stay parking into my Savings Account)..
..
Do you know what are the penalties if ATO find this arrangement as incorrectly being claimed as deduction?

I'm a bit late in replying and can see that Terryw has answered your question.