Hi people!
Just a quick question. My tenants have moved out of my investment property which I am renovating at the moment. As soon as the renovations finish, I will put the house for sale without getting new tenants in again.
My question is:
Can I claim interest on my loan for that house while the house is not tenanted and for sale?
What CAN I claim for this period?Thanks
Milo
Simply NO you can’t!!! [glum2]
However, any renovations done in preparation of sale can be claimed as capital expenditure, and be included into your cost base for the purpose of calculating Capital Gains Tax.
Cheers,
Jo
I would say you couldn’t. However, I believe technically if the property is advertised for rent but is empty you can claim. Just be careful, if you are doing major improvements it might be deemed ‘un lettable’ for that time.
If the repairs are being done to bring it back to the standard it was when first rented the they are deductable.
Otherwise as Monopoly suggested they may offset the CGT – or even a combination of both.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.69%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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