hi,
i am looking at building a new house for the intention to use as an investment property. Could anybody tell me what the go is with recovering expenses used to do this. Am i able to include interst exp (i would be taking out an int only loan) from the time i start building, or only from the time i start to rent out the house. Any other information on this would be appreciated
thanks
My understanding on this topic from my accountant and the ATO, is that you can claim the interest and other expenses associated from the beginning of the project.
The more you can prove it is for an investment property, I think the less complicated it will be in the eyes of the ATO.
Hi Tomleslie,
If your accountant is from the ‘you can only claim when it earns an income school’ refer him/her to the Steele case.
This resulted in a ruling that you can claim expenses from the time the project started if there wasn’t an ‘unreasonable’ delay between buying the block and starting the building.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
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