All Topics / Legal & Accounting / Tax deduction on property

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  • Profile photo of PyyuenPyyuen
    Member
    @pyyuen
    Join Date: 2012
    Post Count: 1
    November 12, 2012 - 9:58 am

    Hi, just wondering if anyone has any suggestions re the following:

    Currently living in property A (no mortgage). 

    Property B is currently rented out (loan still owing I bank)

    Future plan is to demolish property B and rebuild property B to make it my principal ace of residence. 

    I would like to use equity in property A to pay up for the new property B. Will be renting out property A once property B is built. 

    Question is how or is there a way I can claim tax deduction on property A loan interest?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    November 12, 2012 - 10:19 am

    Interest won't be deductible as it is a private expense.

    You could sell to your spouse who could borrow to buy….

    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

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    November 12, 2012 - 11:29 am

    Terry beat me to it.

    Spousal Transfer is an option. Had a loan approved today for a forum client in the same boat.

    Often takes a bit of number crunching but can be very worthwhile.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

Viewing 3 posts - 1 through 3 (of 3 total)

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