Can I claim this finanial year?

Viewing 6 posts - 1 through 6 (of 6 total)

Getting There
Member
@getting-there
Join Date: 2004
Post Count: 7
June 23, 2004 - 4:52 am
Hello everyone,
I posted this in “Help Needed” but i think it may be better suited in this section.
I purchased an investment property in August 2003 and are going to have it available for rent end of July 2004. The house needed renovations as it was a sleeping beauty. Substancial structual work has been done so and the interest payments alone have reached 5 figures. Ive been advised by my accountant that i will not able to claim expenses, depreciation, interest, etc because it was not rented or ready for rent during this finishing financial year. Is this totally true or do i have other options??
melbear
Member
@melbear
Join Date: 2003
Post Count: 2,429
June 23, 2004 - 7:17 am
Hi Getting There
It’s true unfortunately. Is there no way you could make it available now? Advertise as available now, see if you get any prospects….
They may take one look – and say, no way, not fit to live in, but at least it would have been available…. although I think you could still only claim for the time it was ‘available’..
As was mentioned in response to your other post, the interest and other costs would be added to your ‘capital base’ when it comes to selling…
Cheers
Mel
qwerty
Participant
@qwerty
Join Date: 2004
Post Count: 117
June 23, 2004 - 7:36 am
Yes, I seem to remember the “to let” sign at the front of this place during renovations…………….if you get my drift……..[biggrin]
melbear
Member
@melbear
Join Date: 2003
Post Count: 2,429
June 23, 2004 - 11:08 am
qwerty, I reckon I might have seen it too. Had a look inside, but didn’t think I’d want to live there at the moment……
Cheers
Mel
Getting There
Member
@getting-there
Join Date: 2004
Post Count: 7
June 23, 2004 - 11:54 pm
I like the sign bit, but i have heard neibours are investigated. I guess i better see what the accountant recommends depending on the info “I” give him. Thank you all.
maniyak
Member
@maniyak
Join Date: 2002
Post Count: 10
June 24, 2004 - 2:01 am
If you were building a house on vacant land with the intention of renting it (ie earning income), then you may be able to claim interest and outgoings even though there is no rent (yet). Does this apply to you, maybe. Go to the ATO site and look up the “Steel” case. There is a final ruling on this subject. Read up and then show your accountant. If he doesn’t know about the Steel case, get another accountant.[evil5]